Immediate Annuitization

Immediate annuitization, as the name suggests, means payment of benefits begin right away, as compared to a deferred annuity, which makes payments at a later date. To enter into an immediate annuity, you will need to make a lump sum payment so there is enough capital to distribute. The obvious benefit of immediate annuitization is that your payment stream is available for use without any delay.

Payment Options
Your payment options do vary, however. If your annuity is paid over the life of the annuitant (the recipient), it will be paid until death. If the annuity is of the "period certain" variety, it will be paid for the agreed upon period. There is a third option, "life with period certain," which will pay either to life, or for the agreed upon period, whichever is longer. The rates you receive will vary according to the type of annuity you purchase.

Immediate annuities do have risks involved, however. By locking yourself into a lifetime of level payments, you are not necessarily guarding against inflation. You are also gambling that you will live long enough to see your money returned. You might well invest a lump sum, but only collect a portion of your original investment. The insurance company would then keep the balance.

At AnnuitySearch.com, we understand how difficult it can be to find the best annuity for both your future needs and present financial situation. That is why we are here to help. We will search the marketplace for the best annuity for you, and guide you through your options. With over 35 years of experience in the market, we know we can find the right financial plans for investors of every type.