How Annuity Premiums Work
A premium paid into an annuity is simply an investment amount in most cases. For example, you may want to buy an annuity with $10,000. If you complete an annuity application and write a check for $10,000, you’ve paid a $10,000 premium into the annuity.You may want to continually make annuity premium payments. If so, find out if you’ll have to wait for each new payment to stay in the account for a new surrender period.
Compare Annuity Premiums to Life Insurance Premiums
For a lot of annuities, you don’t have to continually make premium payments like you do with a standard life insurance contract. Of course, you should verify exactly what is required in your particular situation and with your particular contract – you don’t want to give up any rights or benefits!A lot of people simply make one annuity premium payment – or one investment – with a lump-sum of money. Then, they just let the annuity do it’s thing for a few years.
Return to the Annuities Overview page.
