The annuities are considered to be a great option to relive a person from the huge amount of debt. It is widely seen that people generally make the mistake of taking another financial aids to reduce their burden of debt. This foolish step only doubles their loan pressure. In this way they never remove themselves from debtor status. The situation makes them spend their lifetime making payments and meeting deadlines.
There are several ways which bring guaranteed solution to the borrowers. Annuities are the best possible option to pay the outstanding debt in retired life. Annuities bring monthly monetary solution which helps the person to pay their monthly debt installments. Sometimes, the retired person makes the mistake of becoming the co-signer for a student loan. Failure to pay the loan in time, makes them loan defaulter. This worse condition multiplies their debt load. Deferred annuity has the power to take out an individual from debtor status. The deferred type of annuity provides tax deferred money. It is beneficial to pay any type of debt. The deferred annuities have some advantages which is helpful to meet the needs.
Benefits of Deferred Annuities
- This plan is a great way to postpone paying income taxes on your monthly earnings until you completely withdraw the total money. In this plan, every single earning grows tax deferred.
- Non-taxable money transfers can be done with the help of this type of annuities. It provides you the option of transferring your money from one funding to another. In this process you don't have to pay income taxes on every earnings you make. It is the ultimate process to relocate your money without any further tax hassles.
- This annuity scheme also has death benefits. After the death of the annuitant, the annuity will provide death benefits to the beneficiaries without the delay or cost of probate. The wife can step as the latest owner of that annuity and will have tax benefits until she withdraws the entire money. In this process the wife will be able to pay the debts after your death with tax benefits.
- The primary aim of this annuity is to provide an additional income to the retired person. Here, the person can choose the mode of withdrawal. He can either have the money at lump sum or can have the amount in steady monthly installments.
- When monthly payments are received for lifetime than at a time, the annuity guarantees the periodic payments for life and tax benefits are spread over that insured period of time. Sometimes, some of the earnings are included in every payment and can be taxable. The amount which has not been distributed can continue to be tax deferred on this remaining amount. The persons who are in lower tax bracket enjoy tax liability on their income.
Deferred annuity serves the ultimate purpose of reducing the debt level of any individual. All you have to do is contact an insurance company and ask them to send their representatives with different types of annuity plans. Compare the annuities to find the best suitable option for you.