Immediate Annuities

An immediate annuity, also called an immediate payment annuity, is an annuity contract that is purchased with one lump sum payment and has a payment plan that starts immediately. While an immediate annuity can be purchased at any age, they are commonly used for retirees looking to turn a large amount of money into a stream of payments and protect against potential downfalls in the marketplace. Should you need access to your capital at some point, there may be penalties involved, so be careful to understand the specifics of your contract.

Immediate annuities are wonderful money-managing tools to hedge against an insecure financial future. They will have several options for the investor to consider. Benefits may be paid for the lifetime of the investor, for the lifetime of the investor and spouse, for a specific period of time, or for the lifetime of the investor and beneficiaries. Payments can be made monthly, quarterly, semi-annually or annually, and can usually be done through direct deposit.

The investment itself will be made through an insurance company, and not a direct holding. Still, you have choices about the type of annuity you enter into. Most immediate annuities offer a fixed rate of interest. This guarantees payments, though it can lag behind inflation if the lifetime of the investor lasts a long time. Immediate annuities with a guaranteed annual cost of living increase will keep up with inflation.

Immediate annuities are an excellent vehicle for retirees looking to convert savings, an IRA or other retirement account into a stream of payments. And if you are looking for the right immediate annuity, let AnnuitySearch.com do the searching for you. It's what we are trained to do, and do well.