Annuities can be difficult to understand, and the fact that there are several different kinds can make things even more complicated and overwhelming. The Lewis Financial Group can help break down the benefits of an immediate annuity in comparison to a deferred annuity for you and discuss the different options available so that you can make the best choice for you, your family and your situation.
An immediate annuity is an irrevocable contract between the individual and insurance company. The insurance company ensures to provide sequential considerably equal payments over a period of time in exchange for a single premium paid at issue. Payments are guaranteed monthly, quarterly, annually or semi-annually or for a set period of time by the insurance company, and is often purchased with earnings from other types of retirement accounts, like IRAs, 401(k) plans or life insurance awards.
Compared to deferred annuities, payout begins not long after the premium is paid, making it a popular option with those who are just transitioning into retirement. Immediate annuities are often purchased to provide a steady disbursement of income throughout retirement.
While the contract to a deferred annuity can be exchanged for another annuity or cleared, that of an immediate annuity cannot be changed whatsoever. In addition, assets for immediate annuities don’t accumulate on a tax-deferred basis, which is the case with deferred annuities and other retirement accounts.
To learn more about immediate annuities and for help deciding if they’re the right choice for you, contact The Lewis Financial Group today by calling 866-709-5206.