All of us work so hard to provide ourselves and our families the best of life. Thus, it’s necessary that we prepare for the future. Annuities guarantee a steady stream of income anyone can’t outlive. Therefore, you must contact the best annuity company in Oakland County now to start securing your future.
Frequently Asked Questions About Annuities
What is an Annuity?
Annuities have been around for many centuries, with the goal of providing steady monthly, quarterly, semi-annual, or annual income to the person insured. It’s an agreement between you and an insurance company to cover specific goals, like lifetime income or long-term care costs. At the same time, annuities are also used to aid legacy planning and principal protection.
Annuities can be paid as a lump sum or series of payments, depending on what arrangement you prefer. If you choose to give a series of payments, you enter an accumulation phase and pay until a specific point in time.
The good thing about annuities is that you don’t pay indefinitely. Once you’ve completed the accumulation phase, the insurance company will start paying you, and this is called the payout phase.
Why Get an Annuity Plan?
Annuities provide a lifetime income no matter how long you live. They're a great addition to your retirement plans. Budgeting your own money in the bank in your 70s can be taxing and
stressful. With annuities, you can design how much you need every month when you retire, and the insurance company will provide you the money.
Another advantage of getting an annuity is that you’re transferring the risk to the insurance company. Additionally, inflation rates reduce your money’s worth every year. However, when you have an annuity policy, you could decide how much you want to get without being affected by inflation.
What are the Different Types of Annuities?
Deferred and immediate are the two main types of annuities. Deferred annuities provide a steady stream of income years or decades later while immediate annuities provide income typically a month or a year after the lump sum is paid. Because immediate annuities provide income earlier, this is perfect for retirees.
Other types of annuities include:
Fixed Annuity – It's a type of annuity that provides a fixed minimum rate as agreed upon by the time you buy the annuity.
Variable Annuity – It's a type of annuity where the income is based on underlying investments in mutual funds.
Fixed Indexed Annuity – It's a type of annuity that has a minimum guaranteed rate with total returns dependent on an underlying index, like the S&P 500.
Are Annuity Policies Secure?
Since annuities are provided by an insurance company and not the state, guarantees are only as secure as the insurer. Therefore, you should take into account the financial strength of the insurer. Go for highly-rated insurance companies to ensure you’ll get the income as promised.
Contact the Best Annuity Company in Oakland County
Getting an annuity policy may entail a complicated process. At ABB Wealth Strategies, we make sure our customers understand every single thing stipulated in their income. We boast a customer-first mindset, where we put your welfare before our desire for profit.
Our mission is to build a community of happy retirees under the services our company provides. Call us today to discuss the best annuity policy for your future needs.
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