What is a Life Insurance Annuity?
Life Insurance annuity is basically a contract between a life insurance company and an investor wherein, the insurance company makes a series of payments to the other party in exchange for a lump sum or periodic amount. The person who wishes to buy the insurance is called the annuitant and the payment which is made on a periodic basis is called the premium. The insurance company can either give the series of payments immediately or at a later date and they offer a guaranteed return by investing the pool of money by the investors in low risk securities like government bonds. There are two phases in this type of annuity namely the accumulation phase and the distribution phase. In the accumulation phase, the person deposits and accumulates money in his account and in the distribution phase the insurance company makes income payments until the death of the annuitants named in the contract.
Canada has two types of life insurance annuity namely ordinary and guaranteed annuity. In the ordinary annuity, the payments will be made to the policyholder after the policy matures throughout his life. The second plan available in Canada is a guaranteed annuity where the payments are guaranteed for a fixed period like five or ten years. And in case the person dies during this guaranteed period all the payments will be made to the beneficiary mentioned by the person at the time of entering into the contract. Canadians need not worry about the money they pay as annuity to the insurance companies as there are many companies which give a dedicated service in taking care of all the financial needs of Canadians and one such company is Canada life. Canada Life manages all the investments in a systematic manner and the investors can get a secured amount during their retirement without worrying about the market fluctuations and economic crisis.
One can also take the help of different wealth advisors who make the entire process of obtaining an annuity in a simple way. These advisors will give different quotes depending on the needs of the investors. The investors have to provide certain details to the advisors like their age, whether they would prefer to take the annuity in their name alone or jointly with their spouse, whether they prefer the payments in a lump sum amount or monthly payments and they need to decide the exact guaranteed period as well. The investors also have to mention the name of the beneficiary to the insurance company. This information will help the advisors to give them the best possible quotes and in turn give the best deal.
Life insurance annuity is very popular these days, especially among retired people, as it allows a person to get guaranteed and regular payments over a period of time. After retirement, when the sources of income of a person reduce, the annuity helps a person in living a stress free life and fulfilling all the financial obligations in future.
Life Insurance annuity is basically a contract between a life insurance company and an investor wherein, the insurance company makes a series of payments to the other party in exchange for a lump sum or periodic amount. The person who wishes to buy the insurance is called the annuitant and the payment which is made on a periodic basis is called the premium. The insurance company can either give the series of payments immediately or at a later date and they offer a guaranteed return by investing the pool of money by the investors in low risk securities like government bonds. There are two phases in this type of annuity namely the accumulation phase and the distribution phase. In the accumulation phase, the person deposits and accumulates money in his account and in the distribution phase the insurance company makes income payments until the death of the annuitants named in the contract.
Canada has two types of life insurance annuity namely ordinary and guaranteed annuity. In the ordinary annuity, the payments will be made to the policyholder after the policy matures throughout his life. The second plan available in Canada is a guaranteed annuity where the payments are guaranteed for a fixed period like five or ten years. And in case the person dies during this guaranteed period all the payments will be made to the beneficiary mentioned by the person at the time of entering into the contract. Canadians need not worry about the money they pay as annuity to the insurance companies as there are many companies which give a dedicated service in taking care of all the financial needs of Canadians and one such company is Canada life. Canada Life manages all the investments in a systematic manner and the investors can get a secured amount during their retirement without worrying about the market fluctuations and economic crisis.
One can also take the help of different wealth advisors who make the entire process of obtaining an annuity in a simple way. These advisors will give different quotes depending on the needs of the investors. The investors have to provide certain details to the advisors like their age, whether they would prefer to take the annuity in their name alone or jointly with their spouse, whether they prefer the payments in a lump sum amount or monthly payments and they need to decide the exact guaranteed period as well. The investors also have to mention the name of the beneficiary to the insurance company. This information will help the advisors to give them the best possible quotes and in turn give the best deal.
Life insurance annuity is very popular these days, especially among retired people, as it allows a person to get guaranteed and regular payments over a period of time. After retirement, when the sources of income of a person reduce, the annuity helps a person in living a stress free life and fulfilling all the financial obligations in future.
