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What Does Make Immediate Annuities So Unique?

People with different lifestyle have different expenses and need to plan their retirement specifically. Let’s get to know how immediate annuities can prove a blessing to non-so-planner seniors.

At times, seniors find it tough making both ends meet in the later years of their lives. Annuity insurance plans have been helping elderly people with managing their daily life expenses after retirement. Insurers are coming up with different plans to help people with specific requirements and we are going to learn more about immediate annuities in this article.

Know Immediate Annuities

As the name says, these annuities are designed to help elder people with a consistent flow of income, immediately. The offered plans are made for the people who couldn’t buy an annuity in the initial years of the employment. In case you also are approaching the retirement and haven’t planned anything, you can a plan and start receiving a guaranteed monthly income immediately. There are reputed and popular providers offering affordable plans and you can receive immediate annuity quotes from an online portal in a few simple steps.

Advantages

The biggest advantage of these plans is the immediate flow of income.  You will start receiving a guaranteed monthly income right after buying a plan. These plans prove a perfect fit for the elder people who have retired or going to retire very soon and are worried about the lifestyle expenses.

Another advantage is that this flow of income continues for the lifetime and the annuitant won’t have to worry that they may outlive their savings one day.

If you have chosen a fixed annuity plan, you will receive a fixed income and can plan your expenses in advance.

Also, the federal government provides a tax relaxation on your investment in annuities and you will have to pay a smaller tax on your total annual income.

Providers offer a good interest to the annuitants and the monthly income are higher than the investment made.

Disadvantages

The benefits aren’t transferable. This means if you pass away early, your loved ones won’t be eligible to get any monthly income, a refund on the amount or any other benefits.

These plans are non-cancellable. Once that payment is made, you can’t get that amount to use for any other purpose.

Type of Benefits

Whole Life: Under this, you will receive a guaranteed income till you live and the payment will stop in case you pass away.

Whole Life with Cash Refund: Here, you receive a guaranteed income and your beneficiary will receive the difference in case pass away.

Fixed Term: These plans provide a guaranteed income to you for a certain number of years such as 10, 20 or 30 years.

Whole Life with Fixed Term: If you have bought ‘Life & 30 years’ plan, you will receive a monthly payment for life and in case you pass away before 30 years, your beneficiary or spouse will receive the payments for rest of the term.

How To Apply For A Plan?

Getting a plan isn’t as tough as it seems as there are various insurance counselors to guide you with the most suitable plan. You can get cheap annuity insurance through an online portal where you just need to fill your requirements in a small form and representatives will be there to help. You can discuss the various plans available and their specific benefits. Depending on the monthly payment and benefits offered, you can shortlist a few topmost plans and buy the most comprehensive one.

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