subject: A Couple Of Reasons Why It Is Good To Get An Annuity Account For Your Self [print this page] Due to this, it is definitely a good thing to take some time to mull over the reasons to invest your money into something that will pay off in the long run.
To guide you through this process, here are some of the advantages to taking out an annuity and how it can give you a better return on your money, compiled with help from Investment Sense staff.
One of the main positives of a retirement annuity is that it allows you to receive the security of a fixed income, which you will get instead of your pension. This can give you the peace of mind of knowing exactly how much cash you will have to spend on each month; you will then be in a much more efficient position to budget. As a result, having an annuity is like having a fixed wage; meaning that you will have the security and stability that you are accustom to.
If you should decide to take out an annuity then even if you die before you reach the appropriate age your loved ones can still be protected thanks to annuity protection. If you go with this option, a spouse or partner could be entitled to a lump sum upon your death. However, this would be subject to a tax charge; it does however mean that your cash will not be lost and that your family and loved ones will receive some form of financial support. This addition means that an annuity can aid your family when they have to afford your funeral and take a lot of unnecessary stress out of the situation.
If poor health or living a certain type of lifestyle may lessen your life then you can look at an extra or an impaired life insurance fund. This type of fund can be beneficial if you life's hobbies, for example smoking and drinking, mean that you may have a shorter life span than the average person. Other conditions that may make you eligible for this type of policy include angina amongst other health problems you may experience. Consequently, if you are concerned you may not make it to 75 years old then you could well find it reassuring to know you can claim some of the annuity.
It is straight-forward to when you authorise a policy in your name as your business pension supplier will usually give you the chance of an annuity when you are close to retiring. This means that if you are interested in an annuity then you dont have to do anything, just wait until you are contacted. However, you should know that until you are 75 years old you are not obliged to have an annuity but the age limit may soon be lifted in the future. Therefore, it may be ideal to look for the best annuity rate available or listening to an expert's advice, like the people who work at Investment Sense.
An annuity is available with a range of choices, making them ideal for a range of different personal circumstances. For example, you may want to take out either a single-life or joint-life annuity. A single-life annuity supplies you with an income for the rest of your life and ceases on your death; whereas a joint-life annuity will carry on paying your spouse after you have passed on. There is even a choice available on how much is paid out; as you might want half or even two thirds of the original cash income to be given to your spouse. You can even get inflation proof annuity.
Hopefully, these benefits above should help you to decide where you should put your hard-earned cash and whether an annuity will be the best solution for your financial situation.
