4 Basic Facts About Annuity Life Insurance

​Annuity life insurance is lesser known than the typical life insurance. Although the two have huge similarities, there are still differences that are worth note-taking. Which between the two would fit you best? In this article, we will provide you with the four basic facts about annuity, its benefits, as well as its risks. 

4 Facts About Annuity Life Insurance

1. Annuity life insurance is the product of your investment that usually pays you an amount of money in several years or a lifetime. If you have this type of coverage, you are eligible to receive an amount of money every year until the plan expires or you die.
   
   
2. There are several types of annuity life insurance that you can choose from. These are the fixed, variable, fixed-period, or lifetime annuities. Each type is explained below:
   
    - Fixed annuities insurance has a fixed interest rate as agreed upon by the annuity plan.
   
    - Variable annuities have an interest rate that depends on the market movement. It may decrease or increase depending on the trend. 
   
    - Fixed-period or period-certain annuities insurance pays you only on the years agreed, usually 10, 15, or 20 years. If you die before the plan expires, your beneficiaries are eligible to receive the remaining sum.
   
    - Lifetime annuities insurance covers you for your entire life. This type could be a great choice if you started the plan young. 
   
   
3. The main difference between annuity life insurance and the basic package is that the former provides annual payment, while the latter focuses more on giving a lump sum amount. However, this type also gives you an option to go for a lump sum if you want to restrain your spending.
   
   
4. If you die not being able to pay the entire amount, your beneficiaries will receive less than the expected amount. Meaning, the previous total amount you have paid will be deducted quite much. Hence, we recommend annuity life insurance if you can outlive your money, or else the company wins. 

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It is also vital to plan your annuity life insurance properly before deciding on choosing this type of coverage. This way, you will know which type of plan best fits your needs.

At Rick Insurance Agency, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (405) 722-5556 or Click Here to request a free quote.