Single Premium Annuities Bring Simplicity to the Equation

A new article from InsuranceAgents.com takes a glimpse into the word of single premium annuities. End Quote

The single premium annuity is specifically formulated for those who don't have much time and want to receive the benefits of their annuity immediately

Chicago, IL (1888PressRelease) October 06, 2009 - For investors who don’t have a lot of time and would prefer short-term benefits they can enjoy sooner rather than later, single premium annuities may just be the order of the day.

A singe premium annuity is a life insurance product, for those who want a safe, guaranteed income that can’t be outlived. It allows investors to make a single premium payment—ranging anywhere from $5,000 to $1 million—and then they can receive a pay out (usually in monthly installments) for the rest of their life, or for a predetermined number of years.

It’s ideal for the more mature investor.

“The single premium annuity is specifically formulated for those who don’t have much time and want to receive the benefits of their annuity immediately so they can enjoy their retirement,” the article states.

There are two different kinds of single premium annuities: immediate and deferred.

A single premium immediate annuity means that the investor’s pay out will begin one month after the annuity purchase. The single premium deferred annuity gains interest over time and is typically used to fund a retirement (any withdrawal of funds before the investor has reached 60 years old, and the investor will be hit with a 10 percent penalty).

A single premium annuity can be a very beneficial investment, but may not be relevant for everyone. And investors shouldn’t make this decision alone. To help decide which single premium annuity is right for them, they should talk with their life insurance agent or a licensed financial expert as soon as possible.

For more information, visit InsuranceAgents.com.

staff contribution: Meha Ahmad

http://www.insuranceagents.com/single-premium.html

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