Are Living Benefits Annuities A Good Idea?

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By: Mark Long
on 16th Aug,2013

Living benefit annuities sound always wonderful and its an bliss to know that.
Are Living Benefits Annuities A Good Idea?


Living benefit annuities sound always wonderful and its an bliss to know that. The investor puts money into the annuity and receives a guaranteed rate of return. The living benefit annuity as the name itself tells, it is planned to guarantee the money benefit provided to the annuitant and towards the retirement or old age, it usually guarantees protection of the principal investment, the cash for annuity payments, and strongly guarantees a minimum income over a stipulated period of time to the beneficiary and annuitant.

 

There’s not much in life that is guaranteed, so people will run to embrace any guarantees. Many people, however, experience buyer’s remorse after the purchase and run just as fast to sell annuity. They want the cash for annuity back again because they grow frightened of their initial investment. Before you run out to sell that annuity, however, discover if it is actually right for you and your situation.

 

 

1.   Begin with Your Needs

Assess your needs over time to make sure a living benefit annuity is right for you. Write down every reason for investing and make sure living benefits annuity is actually the right benefit for you. There might be other investments which work better for you so this list is the perfect place to start. After the list is complete and you have decided that this is the investment you’d like to pursue, continue on to step two in the process.

 

2.   Look Over the Different Living Benefit Annuities

You will need to know the different types of living benefit annuities. There are a number of different annuities so you will need to make sure you get the one which works best for you. Research each type of living benefits annuity while making your decision to educate yourself and make sure you don’t make an investment which has you running to sell annuity. Many people use charts to compare and contrast annuities to their unique situations.

 

3.   Research Companies

After you’ve done the research and picked the right living benefits annuity for yourself, you will need to research companies selling these types of annuities. You are looking for the company who will be the most competitive with their rates. This is a great deal of footwork but it is worth the effort to give you peace of mind and to help you understand if living benefits annuities are right for you. Research the company fully to understand how they operate and how they can help you. Approach the appropriate company and ask them to advise you in your investment process.

 

 

4.   Read the Small Print

Finally, read everything you can before signing any paperwork. Some of the small print on these forms state that you cannot withdraw early or that the rates fluctuate, eventually digging deep into your initial investment. Do not let a broker or agent rush you into signing any papers you haven’t read. A company who encourages their employees to rush investors is a company who should not be trusted. Take the paperwork home if you need time to read the fine lines and fully understand what you are reading. Remember, this is your money and your investment. No one should rush you to do anything with your money.

 

Follow these tips to find out if living benefits annuities are right for you life time commitment or during your old age or for your life after retirement. They are different for each situation so you might find that your money is better placed elsewhere. If you discover that this type of investment works for you, read everything so you are not forced to sell annuity or get less cash for annuity than your initial investment.

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