Lifetime Annuity – A Sprawling Umbrella to Safeguard You

Nobody wants to grow older yet it is inevitable for every human being. That is why it is very much important to think wisely about our retirement phase. Planning often centers around finance as income stagnancy often crops us as the main trouble in the post retirement phase. The problem takes a worse turn when the retirees run out of fund and have no additional source of income. Investing in a lifetime annuity in the service period may be of great help to them in a troubled condition during their twilight days.

The majority of the retirees depend on a frail figure of pension. If they have not managed to save a huge sum, then chance is great that the saving will be exhausted if they live longer. As the average life expectancy has increased all over the globe, so for a healthy living the senior citizens must have a concrete source of steady income. Lifetime annuity can effectively provide them with the support to lead a relaxed life till their last breathe.

When you buy a lifetime annuity, you invest either a huge sum at a time or make payments over a specified period. In exchange, you receive an incessant cash flow on monthly basis from your insurer for the rest of your life. This annuity product is thriving in popularity as it protects the investors against the risk of increasing life expectancy.

Lifetime annuity may be of several types such as fixed annuity, variable annuity, index annuity etc. Fixed annuity provides the investors with maximum security. The rate of interest remains fixed throughout the period of payment disbursement. In case of variable annuity, the payout is not fixed and depends on the performance of your investment in the sub-accounts. This type of lifetime annuity is risky for the investors but they also gain a lot in the event of good performance.