An annuity is a financial product, which pays fixed payments stream to the person. These financial products are then used as the income stream for seniors who are retired. Annuities are the contracts, which are issued, distributed, or sold by the financial institutions that invest funds from the people. Individuals are helped by them in a way that they tell them the risks that they may face if they do not have their savings. On annuitization, the institution that is holding issues payments stream at a point in time.
An annuity is a contract between you and the insurance company during which series of payment or payment sum is made by you and as a result, you get regular disbursements, later on, or immediately in the beginning.
Types of annuities
Annuities are available in three varieties, variable, indexed, and fixed. Every type has its payout potential and risk level.
- Fixed annuities – pay a fixed amount
- Variable annuities – offer an opportunity for the higher return potential with is accompanied by risks that are greater.
- Indexed annuities – somewhere between the potential reward and risk
Annuities at Clark and Associates Insurance Professionals
If you are looking for the annuities, you can call us now for more information.