4 Essential Elements of Annuity Insurance

​Are you a planner? Do you wish to have a good retirement? Read this article to discover what annuity insurance is all about to have to doubt.

Annuity Insurance Background
An annuity is a contract or agreement between you, as the owner, and the insurance agency as the issuer. In simple terms, it is the money you pay to the insurance firm which pays out your earnings back to you or your beneficiary in time. An annuity is developed for providing income to people for their awaited retirement years.

There is a qualified or non-qualified annuity. A qualified annuity is used with tax-advantaged connected retirement plans. This is accountable for contribution, withdrawal, and tax policies, which applies to such a plan.

On the other hand, non-qualified annuity's earnings postpone the tax until you start receiving payments from the issuer.

Your annuity insurance investment grows a substantial amount over a longer period.
 
Annuity Insurance Parties
You have four parties in an annuity contract: the annuity issuer, the annuity owner, the annuitant, and the annuity beneficiary.

First, the annuity issuer is the insurance agency or company which issues the annuity. Second, the annuity owner is the buyer of the annuity. Third, the annuitant is the measuring life for assessing and timing, plus the number of benefits and distribution to cover. Lastly, the beneficiary is the one who will receive death benefits from the annuitant.

Annuity Insurance Phases
You have two phases inclined with an annuity: the investment phase and the distribution phase.

The investment phase is also called the accumulation phase. This is the period when you add or put money to your annuity contract. You can do it in a lump sum or single premium or periodic payment.

The distribution phase is the time when you start receiving earnings from the annuity contract. You have two options for receiving: withdraw some or withdraw all at once; or receive it over a more extended period.

Annuity Insurance Suitability
You must understand that annuity is not for everyone. It is crucial to determine if you are suitable for this type of insurance. This is a great tool when used appropriately. But, insufficient awareness can damage the policy.

Want to expand your knowledge about annuity insurance? Contact your reliable insurance provider so you can get one.

At Rick Case 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.