Types of Annuity in Insurance

[IamDozzy]

I guess by now we should have known the meaning of annuity in Insurance. Annuity in Insurance is when a lump amount of money or installments is paid to an insurance company for later payments at a specified date usually during retirement. There are different types of Annuity in insurance. They include;

1. Fixed Annuity
These are annuity plans offered by insurance companies with a fixed interest. In essence they pay a particular rate of interest that is guaranteed.

2. Variable Annuity
These are annuity plans offered by insurance companies that allow an investor choose from a variety of mutual funds . It basically allows the investor to receive large amount of money if the investments does well or small amount of money if the Investment does badly.

3. Deferred Annuity
These is a type of annuity in which payments are delayed to a later date to allow for a larger stream of income from the investor.

 

[Daykas]

I guess by now we should have known the meaning of annuity in Insurance. Annuity in Insurance is when a lump amount of money or installments is paid to an insurance company for later payments at a specified date usually during retirement. There are different types of Annuity in insurance. They include;

1. Fixed Annuity
These are annuity plans offered by insurance companies with a fixed interest. In essence they pay a particular rate of interest that is guaranteed.

2. Variable Annuity
These are annuity plans offered by insurance companies that allow an investor choose from a variety of mutual funds . It basically allows the investor to receive large amount of money if the investments does well or small amount of money if the Investment does badly.

3. Deferred Annuity
These is a type of annuity in which payments are delayed to a later date to allow for a larger stream of income from the investor.

I am enlightened by your post and it really helpful.
I only know of the fixed annuity and deferred annuity but with this am able to know of variable annuity.
I usually think insurance is all about getting a fixed annuity and deferred annuity. I think I need to go and study more about insurance has a whole.
Thanks for this hit up point

 

[Godslamp]

A deferred annuity receives premiums and investment changes for payout at a later time. The payout might be a very long time; deferred annuities for retirement can remain in the deferred stage for decades.
An immediate annuity is designed to pay an income one time-period after the immediate annuity is bought. The time period depends on how often the income is to be paid. For example, if the income is monthly, the first payment comes one month after the immediate annuity is bought.

 

[Mandy96]

I am sorry to say this, is not like i am trying to badmouth this analysis, it’s just that the fixed annuity does not sound fair to me, if truly what the definition says about it is real. Well there will be an advantageous parts of it too probably for people that matches their needs

 

[Nite]

The basic principle of annuity is mostly interlinked to that of a pension. However, an annuity and a pension are completely different concepts. An annuity is actually a chain of periodic payments that are made time to time from a lump sum corpus. Thus, the annuity is a regular source of financial income, and an excellent choice for retirement subsidising. In the world full of uncertainties, annuity is the most certain thing you can rely on.