Understanding Annuity Rates and Immediate Annuities

Annuity can be defined as a plan in which you will have to make payments towards the annuity and in return get some payments at regular intervals as mentioned in the agreement. Annuity Rates are very important in calculating the amount of money you will receive when the annuity matures. Therefore, if you want a good return you must search for good Annuity Rates. In order to get best Annuity Rates you will have to start planning early. If you wait until you reach the peak of your career you will not be able to get good rates. You will have to do proper research about the types of annuities available in the market and then you can select according to your personal interests and requirements. There are fixed Annuity Rates as well as variable Annuity Rates. You will have to choose one which you feel will provide you best returns. The Annuity Rates vary from time to time. This variation is due to the amount which you want to invest and the time when you want to start receiving your payments. It is also important to choose a highly reputed and a good company which provides you with the best deal.

It is well known that annuities are of various types in order to meet the requirements of different individuals. One such type of annuity is Immediate Annuities. Immediate Annuities offer many advantages to the investors. In this type of annuity you do not have to wait long to receive payments like in deferred annuities.

In Immediate Annuities the insurance companies have to make immediate payment; therefore the rate of interest offered in this type of annuity is lower. Although, the rate of interest in Immediate Annuities is lower but still it is preferred by many investors due to the benefits offered by them. Immediate Annuities are the best investment plan for those who have got a large amount of money bay way of lottery or inherited a large sum of money. Immediate Annuities are of two types- fixed annuity and variable annuity. Most of the people prefer to invest in fixed annuities rather than variable annuities because they provide a guaranteed monthly income. However, there are some people who prefer to invest in variable annuities although it is risky because they provide high income in case of rising interest rates.

Therefore, before taking up any annuity plan you must consider the Annuity Rates and if you want you can invest in Immediate Annuities according to your requirements.

Source link