How Does A Fixed Immediate Annuity Work?

Submitted by: Denisdw Warner

Investment products may well scare you due to the risk associated with them. But investments and pensions may well not bring sufficient income to support you forever. The most important part of retirement is safety and reliability of the income- you need to rely on that. A fixed immediate annuity is exactly that- a source of reliable and dependable monthly income.

If you are lucky enough to have an employer sponsored pension or retirement account, you need to decide what to do with those funds when retirement approaches. Pension annuities are typically offered by the pension fund manager when you retire, and they will likely contact you prior to to try and sell it to you. Basically, you are trading in the funds in your pension for steady income in retirement. Based entirely on your age, you may give them$ 100, 000 in exchange for$7, 000 a year – this is similar to a fixed immediate annuity, however the products offered by your pension fund manager may not be your best option.

Don’t think that you have to take this first offer- you are not required to buy the fixed immediate annuity the pension administrator offers. It’s not uncommon for people to do so but they miss out on better options. There are always other options to consider, so don’t take the first thing that comes by!


You may not be interested in a fixed immediate annuity at all for your retirement income, but this might be the only thing your pension advisor offers. You can link earnings on annuities to investments in mutual funds- these are variable annuities. You can also link income and appreciation rates to market indexes- these are indexed annuities. There are a lot of choices and paths to chose from for retirement income.

Another misconception is that many people believe that to realize any of the gains in the market and grow your money, you must be willing to risk losses and see the balance of your money decrease. This is only the case with certain types of variable annuities, and is not the case in fixed immediate annuities. The essence of a fixed immediate annuity is that you transfer the risk of loss to the annuity insurance company, you and, if applicable, a co- recipient, can never outlive your income. That person may be you, a spouse, or even a child. In that case, if the investor were to die, the payments would then be converted to their heirs. Set up correctly, a guaranteed, immediate fixed annuity will keep paying you in retirement for your entire lifetime.

The fixed immediate annuity is first and foremost a guarantee You can stop worrying about stock market fluctuations, knowing your money is secure. You will not outlive your retirement money, and you can rely on steady and consistent monthly payments.

The only downside is that it is a rigid long term contract. You can’t withdraw your funds once you purchase a fixed immediate annuity. You will not realize additional gains other than what the contract terms spell out. Even if your financial situation changes the terms of a fixed immediate annuity remain the same. But lifetime income may be worth it- a good advisor can help you understand the risks and rewards of a fixed immediate annuity.

About the Author: When your interest just expects more, make it a point to go along with this link to Immediate Annuities and stock up on Immediate Annuities at



Permanent Link:

4 Reasons On Why You Should Get A Life Insurance

Submitted by: Insurancesc Leads

We often hear people ask: “Do I need Insurance?” Almost everyone doubts to get one. Why? Because of the fast-spreading scams and frauds that pretend to be a legal insurance company but does nothing but steal your money and swindle your bank accounts. But let’s go back to the topic. Do we really need insurance? The answer is, of course, yes! We need this in almost every aspect of our lives. Whenever we drive a car, we need car insurance. We need insurance to protect both our lives and our family’s. Also, some of our possessions need also to be insured. One of the most important types of insurance is the Life Insurance. There are many reasons why we should get one. I have listed some of the main reasons below.

1st – Life in the world is getting tougher and tougher each day. You begin to worry about almost everything including the food that you’ll eat. Even if death comes upon you, worries will never stop bother your family because even a common burial costs a lot of money. And even if you don’t have a family, you don’t want people to just dump your body in the ocean.


2nd – You’re family will never be burdened with financial problems. Expenses such as mortgage payments and vehicle payments, among others, will continue long after you’ve drawn your last breath. Your family will still feel your support even though you’re long gone.

3rd – Because of your parents’ old age, they cannot work anymore to earn money and their pensions are not enough to support their lives. That’s why you struggle and earn a living for them. You provide them with not only the basic needs but also some of the things that we consider luxury. But what if you die today? You do not want seeing your parents struggle in the remaining days of their lives right? Having your parents named as beneficiaries under a life insurance policy could provide them the things that they would need in the future.

4th – You are the one taking care of the education of your children. Because of your desire to let your children achieve their dreams you send them to a good school though it has a very high tuition fee. But what if you can no longer pay the bills of your children’s education because of your death? Being insured in a life insurance not only takes care of your burial and household, it also provides future educational expenses for your children. Therefore, though you do no longer exist, your children are assured upon having the best education that they will need.

Of course these are not only the reasons why you should be insured. There are many more reasons depending upon your status in life and capabilities. His reason may differ from your reason but whatever that is, it is still for your benefit and of course your loved ones too.

About the Author: Prince Vasquez is an Internet Marketer and a writer of various article topics such as

, health insurance companies, auto insurance companies, travel insurance companies, pet insurance companies, commercial insurance companies


Permanent Link: