One type of fixed annuity is the life annuity and there are a few
different types of life annuity that you can choose from that will
offer advantageous benefits. The payments are set at a fixed amount for a
fixed period of time throughout your retirement until your death. This
is possible because insurance companies use different criteria to
determine what your payments should be and they do their best to make
sure that you will have income for as long you will live.
How Do They Know How Long You Will Live?
It is not possible to know how long a person will live, but there are ways that agents can estimate this period of time for an annuity. One thing insurance agents will look at is the life expectancy of the annuitant. For example, for men in the United States the life expectancy is 75.6 years and for women,
80.8 years. At the age of 65 for a female applicant the agent will calculate a payment for about 15 years. For a man the period would be 10 years so the payments would be higher because of the shorter life expectancy.
Life Annuities To Choose From
Life Annuities: The simplest type of life annuities are straight life annuities which exist only to provide income until the death of the annuitant.
Substandard Health Annuities:
For those who are in failing health, you can also purchase an annuity called a substandard health annuity which takes into account the condition of your health. Payments may be higher than for other types of annuities because there is less time on the calendar to make payments to this type of annuitant.
Annuity Tip
If your insurance company estimates that you will need money for 15 years, but you pass away in two years the money that you have invested with the company will be left with the insurance company. To protect the remainder of the money that may be left in a life annuity you can specify a term which would allow you to give the money to a beneficiary. With a term set at 10 years, if your death occurs within the term your beneficiaries receive the death benefit.
How Do They Know How Long You Will Live?
It is not possible to know how long a person will live, but there are ways that agents can estimate this period of time for an annuity. One thing insurance agents will look at is the life expectancy of the annuitant. For example, for men in the United States the life expectancy is 75.6 years and for women,
80.8 years. At the age of 65 for a female applicant the agent will calculate a payment for about 15 years. For a man the period would be 10 years so the payments would be higher because of the shorter life expectancy.
Life Annuities To Choose From
Life Annuities: The simplest type of life annuities are straight life annuities which exist only to provide income until the death of the annuitant.
Substandard Health Annuities:
For those who are in failing health, you can also purchase an annuity called a substandard health annuity which takes into account the condition of your health. Payments may be higher than for other types of annuities because there is less time on the calendar to make payments to this type of annuitant.
Annuity Tip
If your insurance company estimates that you will need money for 15 years, but you pass away in two years the money that you have invested with the company will be left with the insurance company. To protect the remainder of the money that may be left in a life annuity you can specify a term which would allow you to give the money to a beneficiary. With a term set at 10 years, if your death occurs within the term your beneficiaries receive the death benefit.
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