Annuities allow you to have a reliable income source after you’ve stopped working. They give a sense of financial security that wouldn’t be there otherwise. But there’s more to them than just the routine payments they promise. Here, you will see why annuities can benefit you in more ways than one.
Annuities Give You Control
With annuities, you control when your payments begin, how often you get paid, and the risk and reward potential for your payouts.
The two main types are immediate and deferred annuities. With immediate, your payments begin right away after you pay a large lump sum. With deferred, you’ll have a savings account that grows tax-free during the accumulation phase, and you will receive payouts years later during the payout phase.
While it’s common to choose an annuity that serves as a monthly income source, you can opt for alternative scheduling. You may also choose a quarterly, annual, or semiannual payment schedule.
Payments can increase with interest, as is the case with fixed annuities. Fixed annuities are ideal for those who want to avoid the risks that come with the other two choices. If you pick variable annuities, your account can grow according to a portfolio featuring subaccounts, such as mutual funds. An indexed annuity gives you returns based on a particular stock index, such as the S&P 500. This can fluctuate, but it has the highest return potential.
Your Loved Ones Can Benefit, Too
Annuities can benefit your spouse and loved ones. If you have a joint and survivor annuity, your surviving spouse will receive your annuity payments after you’ve passed away.
They may also have a death benefit component. You can have your contract set up to where your loved ones will receive the leftover funds in your account after you’ve passed away, instead of the funds going to the insurance company.
Your Money Stays Valuable
Saving money is always a great idea, but not all approaches are created equal. Simply letting your money sit in a standard savings account can actually be detrimental. The US dollar loses its intrinsic value over time, and a once-sufficient income may not be enough to cover all the bases later.
Annuities keep you up-to-date. A cost of living adjustment rider, for instance, ensures that your payouts will be consistent with inflation. If you choose a variable or indexed annuity, you’ll have a similar benefit due to the market having a positive bias.
We Will Help You Protect Your Finances
Jersey Medicare Solutions gives you more than Medicare – we give you future financial security so that you’ll always have an income. With our help, we’ll make sure that you get an annuity that gives you all the benefits listed above. Prepare for your future financial peace of mind by calling us today at 973-500-3708.
Thomas M. Brzezinski is one of the founding partners of WMAG William & Michael Advisor Group LLC and Jersey Insurance Solutions. He has been involved in the insurance industry for over ten years and specializes in developing client relationships that last a lifetime.
