By Rafael Onak, InsuranceAgents.com Staff Writer
You retirement does not have to mean the end of your income, and a single premium annuity can help guarantee that you do not outlive your retirement funds. There are several ways to pay for an annuity. You can either pay small amounts over an extended period of time to reach the sum of money in a contract, or you can pay a lump sum all at once. The latter is known as a single premium annuity. Get quotes now by filling out our short quote form online.
A single premium annuity contract typically requires a minimum investment of at least $5,000 to $10,000, but each insurance company contains different requirements. The biggest attraction to a single premium annuity is that you can choose to defer the payment out of the annuity for many years, allowing it to gain interest which will be paid back to the annuitant.
If you have a large lump of money lying around the house, you’ll have no problem funding a single premium annuity. For the majority of people that aren’t as fortunate, however, here are some sources you can use for funding:
In most cases, the annuity can be funded from any source and portions of payments to the annuitant from an annuity that is non-qualified are not subject to taxes.
If you’re searching for a safe, guaranteed income that cannot be outlived, consider investing in a single premium annuity. While annuities have a number of advantages, they also possess a few drawbacks. Investing in an annuity, especially a single premium annuity, is a large responsibility that should not be taken lightly. If you decide to surrender your annuity, you can face severe financial penalties that can greatly alter your future. Before taking the plunge, contact a life insurance agent to help you decide if a single premium annuity is the ideal investment for you. To find a local agent use our quote service to find up to 5 offers from local agents in your area.
Published: Thursday 17th September 2009
