Vincent Yeong was working as architectural draughtsman, now a music teacher. Hobbies - play guitar, saxophone, piano, reading, sports, travel. Blog - http://www.vincentyeong.com
What Is Life Annuity?
An annuity is a contract by which the buyer pays a lump sum to the provider; in return the provider will pay a stream of income to the buyer for life. Sometimes the buyer may pay the premiums by installment.
This product is different from life insurance policies, as life insurance provides death benefit; life annuity only provides income for retirement.
Why do people buy annuity?
People buy this product to provide income after retirement, because the pension or provident fund received by a retiree may not be sufficient, so he can buy this policy as saving for the future. People may also purchase this policy to provide income payment for their loved ones after their demise.
The buyer can purchase this policy by paying the insurance company a lump sum just before retirement, or if he wants to purchase it earlier he can make periodic premiums until the specific retirement age.
There are many types of annuity
Immediate policy – this plan provides income payments begin within 12 months after the buyer bought the policy. This is recommended for those who are about to retire or have retired.
Deferred policy – this plan provides income payments begin more than 12 months after the buyer bought the policy.
How to save money for retirement?
When I finished schooling and came out to work, I thought if I earn 3 thousand dollars a month I can easily save 1 thousand. If one year I can save 12 thousand dollars, and after 30 years I can save a lot of money. But when I saved some money I bought a car, and I worked hard for 5 years to pay it off. After 5 years I changed a better car and worked hard for it. So I find it is difficult to save money, no wonder some old people said they worked until their retirement, they saved a lot of white hair and wrinkles.
So, if you want to have some forced saving for your retirement, you can purchase a life annuity. Remember to save for the rainy days, I mean save money, not white hair and wrinkles.
There are many types of life annuity, so buyers are advised to know the difference between life insurance and this policy, please log on to http://www.indianapolislifeinsurance.net/index.html
- Related Videos
- Related Articles
- Ask / Related Q&A
What’s Hot In Real Estate These Days?
By: Daniel Mc Grey | 10/12/2009REIWired.com tells us that there are a lot of properties to choose from right now – most of which are ready to be disposed at throw-away prices.
Top 8 Ways Your Clients Can Invest For Profits In Real Estate
By: Daniel Mc Grey | 10/12/2009REIWired shares with us the wide range of opportunities that one can explore in real estate. It gives your clients the chance to control the time that they invest as well as the involvement that they want to put in.
So You’re Starting With Wholesaling Houses
By: Daniel Mc Grey | 10/12/2009A lot of people shun real estate investing, thinking it is reserved for people with huge money in their bank accounts. Money is indeed needed, but there are modes of investing that require little or no capital at all. These are short-term real estate investments, and one of them is wholesaling houses.
Rehabbing Houses the Inexpensive Way
By: Daniel Mc Grey | 10/12/2009In real estate investing, the term rehabbing mainly applies to the purchase, renovation, and eventual sale of an old property for profit. The real estate investors who fix and flip properties are commonly known as “rehabbers.”
Gold : A Minor Pullback or a Major Correction?
By: Carter Thompson | 10/12/2009Wow – what a week it was in the world of Gold! After charging above $1,200 on the front-month futures contract earlier in the week, Gold finally finished the week on a very weak note, closing below $1,150, which was right above the low established a week earlier in the wake of the Dubai debt debacle. Clearly, Gold is beginning a trend reversal on a daily-based time frame, but the technical picture is less clear over the long-term. Let’s examine a weekly chart for GLD (one of the financial inst
ETF Trading Gold, Silver, Oil, Natural Gas and the Index
By: Carter Thompson | 10/12/2009Etf trading has made it so easy for traders and investors to get maximum exposure to the entire market without the high fees of mutual funds and manager. There are now etfs covering almost every investment type whether it’s stocks, indexes, sectors, commodities, bonds, real estate, currencies etc… In this short report I will quickly show a few charts on what is happening for precious metals and energy. HUI – Gold Stock This monthly chart of the gold stocks index you can see how easy it is to t
Negotiating the Best Real Estate Investing Deals
By: Daniel Mc Grey | 10/12/2009Veteran investors say that the three most important things in real estate investing are making offers, making offers, and making offers.
Individual Health Insurance
By: vincent yeong | 27/06/2009 | HealthIndividual or family health insurance is also commonly known as personal health insurance. Family health insurance is where you, your spouse and your children are all included in the same plan.
Convertible Term Insurance
By: vincent yeong | 20/06/2009 | InsuranceConvertible term insurance is a policy that allows the insured to convert his/her policy to other permanent life insurance at any time.
Low Cost Level Term Life Insurance
By: vincent yeong | 08/06/2009 | InsuranceTerm life insurance has the cheapest premiums, but it is divided into many categories, do not commit blindly, read carefully and compare free quotes before buying
How is Life Insurance Premium Calculated?
By: vincent yeong | 02/06/2009 | InsuranceThe calculation of life insurance premium is based on age, gender and health
Medical Insurance and Hospital Benefit
By: vincent yeong | 31/05/2009 | InsuranceMedical fees are getting higher these days, if you don’t have enough money and you contracted illness that takes time to recuperate or you need hospitalization you will need help, perhaps the best way to overcome this is to buy a medical insurance.
Buy Life Insurance When You Are Young
By: vincent yeong | 26/05/2009 | InsuranceLife insurance premium will be cheaper if we uy it earlier, the older we buy the more expensive.
How Much Life Insurance Do We Need?
By: vincent yeong | 24/05/2009 | InsuranceCheck out how much life insurance do we need, is there any standard calculation that you can base on?