Rick Case Insurance Agency Blog
Are you planning to buy annuity insurance for you or your loved ones? This is an excellent chance to ask yourself these questions before getting one.
1. Why Do I Look at Annuity Insurance?
You may hear a not-so-good impression about annuities in the past or even now. Why? Because pushy salespersons sometimes offer them. But let this serve as your enlightenment. You can buy annuity products to fit your needs.
If you have a personal or primary reason for buying one, you will feel at peace and guarantee your long-term financial goals.
2. Is the Annuity Insurer Highly Rated?
Your annuity will be suitable if the issuer is reliable and handles it appropriately. It’s crucial to choose a trusted insurance company for your annuity plans. Moreover, agencies have rates as bonds, which are based on their financial strength.
Their insurer scores are measurable through reasonable standards, so you must go for higher protection.
3. Which Annuity Type Should I Buy?
You may choose among various types of annuity.
A fixed annuity requires paying a lump sum for regular payments with predetermined interest rates. You can start to pay right away or in the future. You are not highly exposed to market risk when you have a preset interest rate.
Meanwhile, a variable annuity will require you to pay a lump sum for regular payments with fluctuating rates in the market. When the market excels, you get increased costs, but it goes the other way around when the market goes down.
Immediate annuity requires lump sum payment for a certain monthly amount based on the agreement. It will not let you wait for collection, and you can get lifetime income. However, it loses some liquidity while sinking the lump sum amount into your annuity product.
Lastly, deferred annuity needs you to pay a lump sum to let it grow on an expected period before regular payments come in. It’s cheaper and a little risky, but you can live long enough to benefit from the payout once you receive them.
4. Are the Charged Fees Worth It?
Annuities have their fees. Generally, each annuity has similar and unlike features in some areas. But, you can get it better by maxing out your account type before the money sinks in an annuity.
5. How Does Annuity Affect My Taxes?
Annuity taxes have a first-out and last-in tax basis. Thus, as you start receiving payments, your earnings are accountable for taxes. But when the value gets below the annuity amount, it won’t get taxed.
If you want to experience better benefits in the long-run, then get annuity insurance from your reliable insurance provider.
At Rick Case Insurance Agency, we put our clients first by offering them the policies they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (405) 722-5556. You can also request a free quote by CLICKING HERE.