How does a life annuity work?
A life annuity is a financial product that features a predetermined periodic payout amount until the death of the annuitant. Annuitants pay premiums or make a lump-sum payment to secure a life annuity. Life annuities are commonly used to provide or supplement retirement income.
Is a life annuity a good idea?
Is an Annuity a Good Investment? Annuities are a good investment for people wanting a reliable income stream during retirement. Annuities are insurance products, not an equity investment with high growth. This makes annuities a good balance to a financial portfolio for someone near or in retirement.
What is the difference between a living and life annuity?
Both life and living annuities allow you to leave a financial legacy. Any remaining balance from a living annuity is automatically passed on to beneficiaries, whereas in a life annuity, you can opt to include additional income legacy features to provide for your spouse and family in the event of your early death.
What is a life annuity pension?
What is a Pension Annuity? A pension annuity is a product that pays you a regular income for the rest of your life, no matter how long you live. When you retire, one of the most important decisions you'll need to make is how to secure enough income to live out the rest of your life in comfort.