Usually one spouse buys a joint annuity from a life insurance company. When one of the spouses passes, the second spouse receives regular payments. Another huge advantage is that a person determines not only to whom to entrust his money but also the time period, exactly how many years he will be paid a pension. It will be possible to choose both a lifetime and term annuity, for example, for 10 or 20 years. Besides, with a voluntary format, a person must be paid as much as the contract provides.
Benefits of the program:
- Ability to independently set the size and options for the future pension;
- Tax benefits provided by law for voluntary pension insurance programs;
- Extra return from participation in the company’s investment activities (additional options).
All annuities are insurance products and vary greatly from one insurance company to another. Some insurers offer variable rate annuities that may be linked to a stock market index performance. The clients can choose an index and investment strategy. The strategies may be conservative, moderate or aggressive.
Annuities are great for diversifying your retirement portfolio, but it's always good to use them with other investments and retirement plans.
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