Annuities - Insurance Products in Banks
Annuities - Advantages and Disadvantages of Annuities
An annuity is a contract between the buyer and an insurance company. In general, the insurance company promises to do something with the buyer’s money. This page should serve as a general overview of annuities. After you understand the concept you can look into the various annuity types.
The Variable Annuity
A variable annuity is an annuity with exposure to investments. If a fixed annuity pays a fixed rate of return, a variable annuity pays a variable rate of return. Before making a final decision for or against a variable annuity, you should understand how they work.
Don't Always Bank on Annuities
Banks sell a lot of annuities. To be more precise, a person at the bank acts as an agent and sells an annuity issued by an insurance company. Sometimes the annuity is exactly what the customer needed. However, there are too many stories about consumers walking out of the bank with a product they didn’t need. This page offers a few bits of information to help consumers make better decisions.
Annuitize - Annuities Glossary - What it Means to Annuitize
When you annuitize, you "flip the switch" and and start taking income from an annuity. Annuitizing is a serious decision, but it's not required. This page covers what happens when you annuitize, and whether or not you should do so.
A beneficiary is a person who receives assets at a contract owners death. The contract owner picks the beneficiary at opening the account, or later. There are two basic types of beneficiaries: primary beneficiaries and contingent beneficiaries.
Annuity Premiums Defined
Annuity premiums are the dollars paid into an annuity. In many cases, you can think of annuity premiums as if they were account deposits. It’s a confusing word that gets used because an annuity is technically an insurance contract.
What is an Annuitant?
The annuitant is a person who’s lifespan will affect the annuity. The annuitant is important because of...
Annuity Contract Owner
From the annuity information glossary -- Contract Owner. Covers who a contract owner is and what a contract owner can do.
Annuity Surrender Period
A surrender period is how long you must wait before taking money out of an annuity without penalty. An annuity might not have a surrender period, or it may last for more than 10 years. You can take money out before the surrender period, but you’ll generally pay a percentage of the amount you withdraw.
Immediate Annuity - Definition of Immediate Annuity
An immediate annuity makes income payments immediately, or very soon after purchase. You use an immediate annuity when you want to start taking income as soon as possible.
Deferred Annuity - Definition of Deferred Annuity
Deferred annuities are annuities that do not make payments until later. You put money into a deferred annuity expecting to let it grow inside the contract for several years (or more).