What Is An Annuity?

An annuity, annuity buyers , is a contract in which an insurance company makes a series of income payments at regular intervals in exchange for a premium, annuity buyers , or premiums you paid. Annuities are often bought for future retirement income. Only an annuity can pay an income that can be guaranteed as long as you live final, annuity buyers , . The word annuity is a Latin word. You can find the oldest in the dictionary you have. Annuity means income. An annuity is not a life or health insurance. It is not a savings account or savings certificate. You should not buy an annuity to reach short-term financial goals. There are several types of annuities. The word "annuity" means natural resources. Deferred "The word 'means income later. The word "immediately", annuity buyers , means income now. There are two types of annuities, fixed and variable. The word "permanent" does not necessarily mean your interest is fixed, this means your premium earns a minimum guaranteed rate. Variable, which consists of risk: the dollar (your premium), move into a variable annuity can vary up and down. There are two parts to a fixed deferred annuity guaranteed, annuity buyers , income, a current and a minimum guaranteed interest rate. The minimum guaranteed rate is the lowest rate your annuity, annuity buyers , will earn. This percentage is specified in the, annuity buyers , contract. The current rate is linked to the reserves and the interest of the company, annuity buyers , earns on its portfolio, or an external reference or index. You can start your fixed deferred annuities and interest income thirty days later. Yet it is better to wait twelve months, and, annuity buyers , then the previous years earned interest, annuity buyers , from the second year. With an IRA, you can put inside your individual retirement account of a fixed, annuity buyers , rate, the only vehicle that can provide a guaranteed retirement income to last you as long as you live. Insurance companies are required by law to reserve backup guarantee. Http: / / HappyRetiree.com / You can freely reprint this article provided the author bio, and live links are left intact. Jeff McLeod, is a fixed index linked retirement income annuity specialist. For a copy of the manual of the Buyer Visit http://www.HappyRetiree.com