Annuity Question Indiana IN

Reader’s Question:

I would like to know what are my payment options for annuity and I want to know its benefits and provisions. I am planning to buy one from a local insurer in Indiana.

Cara

Fort Wayne, IN

Hello there, Cara.

Annuities can have a lapse period from the time you purchase until such time that you begin to receive income or benefits. Most insurance companies or annuity companies refer to this as the accumulation phase. During the accumulation phase, you will be able to choose to pay the premium one time in lump sum or in periodic installment payments over a defined period of time.
Premium payments are essentially your cost of purchase for the annuity. Whether you pay singly or one-time, equal or unequal installment, will solely depend on your discretion and capacity to pay.

You can get much benefit from annuities depending on the paid premium amount, earnings or returns of the premiums paid, and the cost and/or charges levied on your annuity.

Let’s say you need an immediate income, then you have the option to get a single-premium immediate annuity. This is especially applicable if you had a windfall in inheritance or real property sale or recent early retirement. Now if you want to invest and you have the money but you are pretty sure you’ll need the money some time in the future, then you can always get a single-premium deferred annuity. This will generate larger payment of benefits as the premium earns interest over time. If you want the benefits to be paid in the future in fixed amount, then you also have the option to make fixed periodic payments or equal amortizations at regular or fixed intervals. Payment modes are really flexible based on your capacity.

Among the basic provisions of annuities, there can be both positive and negative, depending on your points of view and circumstances. You will have to review some key point on administrative fees, withdrawal privileges, surrender charges, and loan contracts. To simplify your requirements, you can always talk to your local agent in Indiana or start shopping online by entering your zip code on the relevant space found in this page.