Post about "quotes"

An Annuity Versus Life Insurance – The Basics

An annuity is almost like the opposite of life insurance. It continues to pay you a stream of income until you pass away. Life insurance on the other hand pays out to your beneficiaries once you pass on.There are two types of annuities the fixed and the variable annuities. An annuity is a kind of retirement plan that will pay a regular income to the retiree for their lifetime. And it provides tax deferred growth which is their key marketing elements.While life insurance is intended to meet the needs of the beneficiaries when the insured person dies. Where in the beneficiaries receive a sum of money that exceeds the value of the premiums the insured person paid.The difference between annuity and life insurance lies in the benefits and the timing of it. Since annuity intends to support the investor’s future income requirements while in life insurance, meets the need of the beneficiaries.An annuity can be advantageous with useful features they offer it’s because of the financial insurance and increase rate they contribute to the investor’s savings and investment. What is important here is to analyze whether you need an annuity or what type of annuity that will perform well for you before purchasing one.The two basic types of annuities are the Deferred and the Immediate. In deferred annuity, the money you have is invested for the period of time until you are ready to begin a withdrawal which is typically during retirement and it accumulates money and you can also be converted into immediate annuities if you want. While the immediate annuity is you begin to receive payments soon after you make your initial investment.Beware because many annuities sounds great moneymaker but there is a hidden fees also that can cut into any profits the annuity pays out.Life insurance is insurance that pays monetary proceeds upon the death of the insured that covered in the policy. Wherein policy is a contract between the insured and the insurance company where they agrees to pay upon the sum of money to the insureds beneficiary when the insured died.The cost of insurance varies on some factors such as the insureds ages, there are also life insurance policies cover whole life and term life. In term life policies it begins with low premium during the initial stages of the policy.In short, life insurance is a financial product which protects your loved ones when the insured died.Life insurance has many different types to choose from while in annuity, only few to choose upon. Annuities are risky especially if you have no knowledge on this and managed unprofessional.So be careful and plan extremely which of the two you are going to purchase, the annuity or life insurance. A choice is at the hand of the insured. If you want to know or explore more regarding the annuity, you can go online through the internet. Do some research before purchasing one and be sure you understand their contract or policies well.If you care and want to protect your love ones, then you have to choose the best plan for you and them. Choose wisely and with some knowledge regarding insurances and the insurance companies also. Be sure to purchase your insurance or annuity to the reputable insurance company which serves the people for a long period of time and with good financial status.