This type of insurance is about the fact that during a certain period of time or once, the policyholder contributes a certain amount of money to the insurance company, and upon reaching a certain period, he receives regular income for life.
In insurance practice annuities are accumulation instruments: an annuity fund is formed, which will be used for a certain period in the future. This instrument is a long-term product of insurance companies that will support the policyholder for the period established by the contract or for life.
There are different types of annuity insurance (annuity). Thus, annuity can be immediate (paid immediately after the insured has paid the entire amount of premiums), deferred (payment under the contract is postponed until a certain future date), life (payment starts from a specified date during the remaining life) and temporary (paid from a specified date during the period provided by the contract). Annuity can also be permanent, i. e. the amount of payment does not change, and variable - the amount of payment changes over time.
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