Annuities
An insurance contract issued and distributed by financial institutions with the intention of paying out invested funds in a fixed income stream in the future
Annuities are designed to provide a steady cash flow for people during their retirement years and to alleviate the fears of outliving their assets. Since these assets may not be enough to sustain their standard of living, some investors may turn to an insurance company or other financial institution to purchase an annuity contract.
As such, these financial products are appropriate for investors, who are referred to as annuitants, who want stable, guaranteed retirement income. Because invested cash is illiquid and subject to withdrawal penalties, it is not recommended for younger individuals or for those with liquidity needs to use this financial product.
Annuities
Annuities can be structured according to a wide array of details and factors, such as the duration of time that payments from the annuity can be guaranteed to continue. As mentioned above, annuities can be created so that payments continue so long as either the annuitant or their spouse (if survivorship benefit is elected) is alive. Alternatively, annuities can be structured to pay out funds for a fixed amount of time, such as 20 years, regardless of how long the annuitant lives.
Overview
Annuities are financial products that offer a guaranteed income stream, usually for retirees.
The accumulation phase is the first stage of an annuity, whereby investors fund the product with either a lump sum or periodic payments.
The annuitant begins receiving payments after the annuitization period for a fixed period or for the rest of their life.
Annuities can be structured into different kinds of instruments, which gives investors flexibility.
These products can be categorized into immediate and deferred annuities and may be structured as fixed or variable.
Who Buys Annuities?
Annuities are appropriate financial products for individuals seeking stable, guaranteed retirement income. Because the lump sum put into the annuity is illiquid and subject to withdrawal penalties, it is not recommended for younger individuals or for those with liquidity needs to use this financial product. Annuity holders cannot outlive their income stream, which hedges longevity risk.
Easily find an
affordable Annuities Plan
Lets Get in Touch
We’re open for any of your suggestions
or just to have a chat.
(281) 660-8741
7155 Old Katy Road Ste N222,
Houston, TX 77024
I agree to receive SMS marketing messages, customer support notifications, and email communications from the Caballaro Agency. Message and data rates may apply. You can opt-out at any time.