When planning to retire, you need to transfer most of your savings to a life insurance company and purchase a retirement annuity. Retirement annuity is an agreement under which a person stops working and receives a pension several years before the retirement age. The most important condition for signing a retirement annuity agreement is money. The first thing that needs to be done in order to use a retirement annuity is to calculate which of the offers by insurance companies is optimal.
Life annuity is an insurance contract between insurer and retiree that promises to pay a guaranteed income for life, often linked to inflation. The policy is terminated when the insured dies. Since it is an insurance policy, the insurer assumes the investment and longevity risks, while the insured is left without financial assets to sign away in the event of his death.
What to look for when choosing an insurer for a retirement annuity
There are several points to look out for when choosing an insurer for your retirement annuity. The main ones are reliability (it can be defined by ratings and reviews on websites) and life insurance services (a special license from the regulator is required for it).
Place of residence
Many retirees do not sell old homes, but maintaining them is very expensive, as these properties are designed for a large number of people. Elderly people can shift their place of residence and go on a trip with the money saved or buy a term life insurance policy.
Source: https://www.moneyweb.co.za/financial-advisor-views/key-decisions-to-be-made-at-retirement/
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