Oncken Insurance Agency, P.C. Blog
An annuity is a policy to cover specific objectives between you and an insurance provider, like principal security, lifelong income, legacy planning, or long-term care expenses. Annuities are more like contracts that you and the insurer are bound together with contractual obligations.
When you buy an annuity, it guarantees an income for you for the rest of your life. With this thought in mind, it makes it popular among retirement planning strategies. You may contribute whatever amount that you would like since annuities do not have a contribution limit.
How It Works
You don't pay annuity premiums continuously, unlike most types of insurance. You stop paying the annuity afterward, and the annuity continues paying you. If this occurs, it is stated that the contract will enter the payout stage.
Premiums may be a single lump sum or, depending on the conditions of annuity, a series of installments. As the accumulation phase, the premium-paying period is known. Annuities are designed to send payments to you or your heirs for a set number of years or a combination of all lifetime earnings with a guaranteed payout.
Types of Annuity
Two main types of annuities are accessible: deferred and immediate. Deferred annuities will later provide a source of revenue, while immediate annuities will provide income in current terms. Fixed and variable annuities come under the deferred and immediate categories.
It is entirely your choice if you want to purchase an annuity. Annuities are customizable, and you can find an annuity that meets your needs. As pension plans become less common, more retirees look forward to annuities that will replace their work income with what they will get from it.
At Oncken Insurance Agency, we do our best to make sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (281) 256-8310 or Click Here to request a free quote.