Investments are not a one day process; it may take some years or decades to get optimum results. With the right approach & long patience, you can make your investment journey successful & fruitful. If you have patience & farsightedness, then Annuities as an investment product can do wonder. Now you might be thinking- what are annuities? How does an annuity work? Don't grow anxious or curse your knowledge, if you don't know about annuities. Why? Because right here in this post, I am going to give answers to all your questions.
Also, you will get an overview of type, pros & cons of investing money in Annuity. There is one more thing before we proceed! Remember that you always can contact us for any kind of assistance related to any investment products. With the help of our experts you can buy & sell Mutual funds, ETFs, Stocks, Bonds, Cryptocurrencies, or any other financial asset.
So, let me come to the point & start explaining the answer to some basic questions about Annuity.
What is the definition of Annuities? Are they good for investment?
What is an annuity in simple terms? How does an annuity work? These two queries are among the most frequently asked questions my readers ask me every day. Now here is the answer. Investing money in Annuities means you are buying a financial product to secure your life after retirement. In simple words, spending money on an annuity means, you pay money to an insurance company for a specific period of time and when you retire from your work the insurance company starts paying you back in installments.
The best part of Annuity is that, upon annuitization, investors keep getting the returns till he/she is alive or to the selected period of time. After the death of an annuitant the spouse of a policy holder keeps getting the returns. It means, it secures not only the annuitant but also his/her spouse. However, Annuities come with different benefits under different terms. I recommend you check out all the terms and conditions & interest rates.
Annuities are good for those investors who believe in making old age safe & secure without running any risk with savings. Though the interest rate is not so high but the returns are fixed that you get till you live. Another best thing about Annuity is that it is flexible & suits the budget of nearly all kinds of investors.
What are the types of Annuities?
Broadly Annuities could be divided in two categories. Immediate payment annuity & deferred income. As the name suggests, immediate payment annuity pays the Annuitant just after the annuitization while on the other hand, in deferred income annuities, the annuitant starts getting returns after a specified period of time. I recommend you to carefully consider all the terms of an Annuity. Don't hesitate from taking help from professionals available at our customer support.
What are the advantages & disadvantages of Annuities?
An Annuity comes with one disadvantage that is that it holds the money for a long period of time. Hence, investors may have to wait for a decade or more than a decade to reach upto the annuitization.On the other hand, one thing that is appreciable about an annuity is that it is safe, secure and offers fixed returns for a longer period of time.
That was all from us in today's blog- What are the Annuities, its types, pros & cons. I am sure you will find all the information quite helpful and effective. If any doubt is left in your mind, remember that our experts are available 24 hrs to help you.