How To Choose The Best Annuities?
It is very common to get confused while choosing the best annuity, so in this post I will explain you the steps to choose the best annuity.
Annuities are basically insurance products which pay fixed amount of money to the policyholder after the death of the insured person. Annuities are usually taken by the parents or the relatives of the deceased person, as it is a way to save money for them.
In this post I will be explaining you the best annuity options available in the market. So, let’s start with the basic question of how to choose the best annuity?
What are the different types of annuities?
There are three types of annuities, which are fixed, variable and indexed annuities. Fixed annuities are the most popular one and are available in all the life insurance companies. Variable annuities are also popular but they are not available in all the life insurance companies. Indexed annuities are the latest addition in the annuity market and are also available in some life insurance companies.
Fixed annuities are the most popular option and they have two types:
- Cash value
- Income annuity
- Cash value annuity
Cash value annuity is the most common one as it has a cash value which can be used by the policyholder during their life time. If you want to get a cash value annuity then you need to choose a life insurance company which offers this option.
Income annuity
Income annuity is the second most common option available in the annuity market. This type of annuity pays monthly income to the policyholder after the death of the insured person. The income depends on the investments made by the insurance company.
Indexed annuities
Indexed annuities are the latest addition in the annuity market and are available in some life insurance companies. It is a combination of both fixed and variable annuities and it provides a guaranteed minimum income to the policyholder.
Conclusion:
I hope now you will have a clear idea about the different types of annuities and which one is the best one for you. So, start investing your money in the right place and choose the best annuity that suits your needs.
