What is an advantage for the annuity?

Annuity is a contract, usually between the insurance company and the owner of the contract. A person who receives anuite payments is called Annitant. Owner and annuitant can be the same person. The annuity provides payments to the annuitants during the life of the annuitant. If the Annuitant dies before paying the full value of the contracts, the benefit for the death of the annuity may be paid to the recipient named in the contract. In general, the annuity is either solid or delayed. With immediate annuity, Annuitant will immediately receive contract payments. If Annitant dies before paying the full value of the contract, the recipient usually receives any remaining money. In order to calculate the value of the annual death benefit, interest occurs until the date of the death of Annitant.

If the annuityn interest is postponed, but the payments do not start immediately. Payments begin on the specific date of initiation recorded in the contract. Payments generally start after a specified number of years called storage period . Annitant receives payments on the basis of the amount of interest obtained during the periodDu. This is called payday or income, period.

There are generally two types of deferred ANUIT, fixed and variable. Fixed annuity obtains the specified interest rate guaranteed in the contract. This rate is determined by the insurance company for the whole contract. As a result, an advantage for paying and annuity death may not maintain the pace with inflation.

In variable annuits, contract funds are invested in various sub -accounts that are bound to the stock market. Payments and benefits of death have a better chance of keeping up with inflation than in a firm annuity. The main disadvantage of IS that it is possible to lose money if shares associated with partial accounts lose value. Interest and initial amount invested in annuity can be lost.

The advantage of deferred annuity deaths is usually equal to any money that remains in the contract, plus the interest that was accumulated until the death of Annitant. All types of annuity can be purchased contractual supplements, Naz can be purchasedEparted riders to increase the dose of death. Riders may have set fees or fees can be determined by a process called subscription.

Subscribing is the way the insurance company issuing annuity determines how risky it is to ensure the life of the annuitant. Subscription may include Annitant's health and lifestyle revision. This review may include medical tests, loan control and interviews with the employer, family and annuitant friends. Usually the higher the annual death, the more detailed the subscription.