When most people think about retirement, they may simply think of an age or an amount of money to retire with. These two factors alone aren’t enough to secure a prosperous retirement. Our newest book, High Point Solution’s Guide to Guaranteed Income by Perry Santillo aims to help you address important questions that pertain to your retirement planning needs in an effort to help you get closer to reaching your goals now and in retirement. Fill out the form and download your complimentary digital copy today to get started!
Here is a sneak excerpt from High Point Solution’s Guide to Guaranteed Income:
Chapter One: What Is An Annuity?
“An annuity is an insurance-based financial product designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time. It is the ”promise” by the insurance company to take in payments over a period of time or in a lump sum, until a certain event occurs (i.e.: an amount of time, age, death), and pay it back at a certain rate, all at once, or for a predetermined period of time including “for life.”
“All insurance products are designed to alleviate risks that consumers face. Let’s use the concept of life insurance as a comparison. Life insurance requires that the policy owner pay a premium to the insurance company to insure against the risk of death. When you pass, your loved ones receive the death benefit of the insurance policy. Annuities are financial products that insure against the risk of outliving your money by disbursing payments to you while you’re still alive. They may seem complicated, but the general concept is quite simple: you place money with an insurance company in exchange for an income stream for a specified period of time, or for life, that grows at either a fixed rate or changing rate depending on the type of annuity.”
“The parties to an annuity contract are the insurance company, the owner and/or the annuitant, and the beneficiary. The insurance company is responsible for making good on the terms of the annuity contract. These are things such as the interest rate, annual payments, or other benefits promised in the agreement. The contract owner and annuitant are often the same person, but the owner is the purchaser of the annuity who makes the decision as to who the beneficiary of the contract is to be. The annuitant is the person whose life expectancy is used to calculate the amount of the annual payments that will be received, and the beneficiary is the person who will receive an annuity’s death benefit. In many cases the annuitant may have already begun receiving annual distributions and the beneficiary may still be eligible to receive a death benefit depending on your contract.”
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