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Little Rock Office
1111 S. Bowman, Ste B-4
Little Rock, AR 72211
(501) 224-6666
(888) 214-3149
FAX (501) 224-0477
Conway Office
269 Hwy 65 North
Conway, AR 72032
(501) 327-4666
(888) 563-5656
FAX (501) 327-4684
Rogers Office
2894 W. Walnut Ave. Ste A
(479) 633-0505
(877) 633_0505
FAX (479) 633-9595
Sherwood Office
8210 Hwy 107 (JFK)
Sherwood, AR 72120
(501) 392-0300
(866) 861-8368
FAX (501) 392-0302 Click these links for more information about:
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Annuities
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Annuities
are a different kind of retirement product. An annuity is designed to provide regular income beginning at a specified date
that can continue for a specified number of years or for the remainder of the annuitant's life.
An annuitant is the person who receives the income.
The primary reason for purchasing an annuity is to provide economic assistance on a regular basis to the annuitant. While annual payments
are a choice, the most common payment option is monthly payments.
An annuity can be useful in helping offset the cost of Medicare Part
B monthly premiums and deductibles, Medicare Part A deductibles and the copayment costs of the Medicare Prescription Drug Program.
Do you remember that report mentioned earlier from the Social
Security Administration that the typical retiree receives only 39% of their needed retirement income from Social Security? Medicare
Supplement Insurance is a popular product among retirees, and it allows the annuitant to use those monthly proceeds in other ways.
Many persons retiring with a pension from their employer have
the option of receiving a full benefit or a reduced benefit that will provide some type of income for their named beneficiary
after the death of the retiree.
Some have discovered that taking the full retirement benefit
and using a portion of it to purchase an annuity for their spouse provides a larger monthly benefit. While it may
not be true for all people, it is certainly something you should check out if you are near retirement age.
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There are three types of premium payment options when purchasing an annuity.
A single premium annuity is purchased with a one-time payment. A level premium annuity is purchased like a regular life insurance
policy with monthly, quarterly, semi-annual or annual payments that stay the same. A flexible premium annuity allows the purchaser
to vary premium payments as long as the payments fall between a stated minimum and maximum.
A
common strategy is to use all or a portion of life insurance
proceeds to purchase a single premium annuity that begins
making monthly payments to the annuitant one month after the
purchase. |
Types of Annuities
Straight Life Annuity - This annuity guarantees payments for the life of the
annuitant. When the annuitant dies, no further payments are made.
Refund Life Annuity - This also guarantees payments for the life of the
annuitant, but it also guarantees that if the total paid to the annuitant does not equal the purchase price, any amount remaining will be paid
to the annuitant's beneficiary.
Joint Life Annuity - Two named annuitants receive income for life. Payments
cease upon the death of the first annuitant. The surviving annuitant receives no more payments.
Joint and Survivorship Annuity - This is similar to the Joint Life Annuity.
This product, however, continues making payments to the surviving annuitant.
Temporary Annuity Certain - Payments are made to the annuitant or the annuitant's
beneficiary for a fixed number of years, then stop.
Is an Annuity Right for You?
The answer to that question is maybe. Retirement income strategies vary
from person to person. We present it here because it is an option you may need to consider. For further information about how an annuity
might benefit you please contact an agent in one of our offices.
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