As you near retirement, a common concern is whether or not you have saved enough money to provide for your retirement needs. With people living longer than ever before, concerns about market stability and worries about outliving their money are real concerns. People are turning to annuities for the many benefits they offer.
Through the use of an annuity, you can receive guaranteed monthly income for the rest of your life. Deferred and immediate income annuities do the same thing, and it’s just a matter of when you want to take advantage of the payout benefits of the contract. You can purchase a deferred annuity which will grow tax-deferred until the time you retire and want to take payments. If you didn’t purchase a deferred annuity and are ready to retire, you can still get guaranteed income payments through the purchase of an immediate income annuity.
How does this work?
Most deferred and immediate income annuities offer the same payout options. You can choose a specific period of time you want to receive payments up to and including the rest of your life. Your monthly income will be based on the premium paid, your age, gender, and which payout option you choose. Many companies also offer a cash-refund feature that guarantees your premium payment will not be lost in the event of an early death.
Is the investment secure?
When you elect your payout option in the annuity you purchased, you are transferring risk to the insurance company in exchange for the premium paid. Because the income payments are guaranteed by the insurance company you don’t need to worry about changes in interest rates or the stock market. Your income will remain level and continue for the payout option you elected.
Is an immediate annuity right for you?
An immediate annuity provides immediate income so if you are retired, or about to retire, it is a good choice. In contrast, a deferred annuity may make more sense if you are not yet ready to retire. A deferred annuity will allow you to continue to accumulate money until retirement, and convert those funds into an income stream in the future.
To learn more about annuity options available from Western Fraternal Life contact your agent or Sales and Conservation Consultant Martin Menke at the Home Office at (877)935-2467 or firstname.lastname@example.org.
Product Sales and Conservation Consultant
Call 877-935-2467 to speak with a Western Fraternal Life Representative.