Annuities

An Annuity is:

• A contract that provides an income for a specified period of time, such as a certain number of years or for life.
  
  
• The purchaser gives the life insurance company a lump sum of money and the life insurance company pays the purchaser a regular income, usually monthly.

Annuities - The highest rate of pay is for the simple life annuity. The life annuity payments stop when the annuitant dies, or at the end of the guaranteed period, whichever is later. A joint and last survivor annuity will pay benefits until the second death.

Advantages of Annuity:

• Once established it takes no administrative efforts to run it.
• Market crashes will not affect payouts and the insurance companies that pay them have their own backup rescue plans that use pooled contributions from other insurance companies to pay defined levels of annuity income.