Types of Annuities

On April 6, 2014, insurancenewsnet.com issued a press release titled Is an Annuity Right for You?  While the release doesn’t exactly answer the question of who could benefit (or not benefit) from an annuity, it does a great job of concisely defining the various types of annuities.

 Here’s a short excerpt from the release:

* Single Premium Annuity: You pay the insurance company only once.

* Multiple Premium Annuity: You pay the insurance company multiple payments.

* Immediate Annuity: You will begin to receive income payments no later than one year after you pay the premium.

* Deferred Annuity: After the initial savings phase, you receive income payments once you choose to receive them.

* Fixed Annuity: Your money, minus any applicable charges, earns interest at rates specified in your contract.

* Variable Annuity: The insurance company invests your money, minus any applicable charges, into a separate account based upon the amount of risk you want to take. The money can be invested in stocks, bonds, or other investments.

* Equity-Indexed Annuity: A variation of a fixed annuity in which the interest rate is based on an outside index, such as a stock market index. The annuity pays a base return, but it may be higher if the index increases.

In addition to succinctly setting forth the various types of annuities, the release also provides tips for people interested in buying annuities.  Of note, the release advises “As with other major purchases, it’s a good idea to shop around and compare information for similar products from several companies.”  As an independent agency, Montana Life Group can do the shopping for you.  Our agents will shop around for you and allow you to compare various annuity plans to help you pick the annuity that’s right for you.  Getting the process started is as easy as requesting a custom annuity quote or calling one of our agents at 406-548-3135.