Annuities - Who Needs Them?

By Compuquotes Team on April 27th, 2008

Annuities can be a great thing, especially for someone on a small, fixed income. Having the payments from an annuity can be the difference between living well and merely surviving. Senior citizens are the usual beneficiaries of annuities. Military pensions and employment pensions are annuities commonly received by the elderly.

Other annuities come from investments. Life insurance policies that have matured or legal settlements that are paid out over a long period of time are also common annuities. Investing in an annuity program can also supplement your income and make a big difference in your lifestyle whether you're retired or not.

Basically people of all walks of life can use, and perhaps need, annuities. Let's face it, financial strain happens to us all at various stages of our lives. By having annuities a person could avoid a great many problems that could devastate and destroy a stable future.

When people get into financial trouble, from losing a job to personal debt, their lives become threatened. The loss of homes, cars, real property and personal property become a harsh reality that no one wants to face. However, with annuities there is a way to avoid most pitfalls associated with your monetary future.

Just a few types of annuities that can interest the average person are deferred annuities, immediate annuities, fixed period annuities and lifetime annuities. �What's the difference?� you might ask. Let's look deeper into that question.

Deferred annuities collect premiums and investment modifications for disbursement at a later time. This is usually for those preparing for retirement.

Immediate annuities are intended to reimburse an income soon after the immediate annuities are bought. The actual period of time in question really depends on how frequently the proceeds are to be compensated.

Fixed Period annuities pay a return for a precise period of time. This is dependant on how much had been paid into the annuities. When the amount is expended the annuity stops paying.

Lifetime annuities are perhaps the best choice of all because it promises to pay for the total of a person's life. But, because death is often an unexpected thing, this is unsettling to many. This is why some people, when choosing the lifetime annuities, decide to add on a �guaranteed period�. This is so if the payee dies before the specified period, the remainder of the money owed would then be placed with the beneficiaries of the will.

So, there you have it, the question of who needs annuities has been answered. The answer is that everyone can benefit from these plans and policies. We know that we will at some point need extra financial help. This alone provides the need for annuities. They are a sound investment for anyone that is looking for a little extra income each and every month when it counts the most. Annuities can be used for retirement purposes or they can be started when a person gets out on their own. Regardless of who you are, everyone can reap the rewards that annuities offer.

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