ANNIUITES

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An annuity is a financial product that provides a regular stream of income in exchange for a lump sum payment or a series of payments. There are several types of annuities available in the market.

 

 

Some of the most common types of annuity products include:

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1. Fixed annuity: This is an annuity that offers a fixed interest rate for a specific period of time. The interest rate is typically higher than what you would earn on a savings account or certificate of deposit.

2. Variable annuity: This is an annuity that allows you to invest in a range of investment options, such as stocks, bonds, and mutual funds. The value of your annuity will fluctuate based on the performance of these investments.

3. Indexed annuity: This is an annuity that offers a return based on the performance of an underlying index, such as the S&P 500. The return is typically capped, so you won't earn the full return of the index.

4. Immediate annuity: This is an annuity that begins paying out income immediately after you make a lump sum payment. The amount of income you receive is based on your age, gender, and the current interest rate.

5. Deferred annuity: This is an annuity that allows you to make a series of payments over time, and the annuity will begin paying out income at a later date. The income you receive will be based on the amount you've paid in, the interest rate, and the length of the deferral period.

6. Fixed-indexed annuity: This is a hybrid of a fixed and indexed annuity, where the annuity offers a guaranteed minimum return, but also provides the opportunity to earn additional interest based on the performance of an index.

7. Qualified Longevity Annuity Contract (QLAC): This is an annuity that allows you to defer payments until a later date, typically after age 70 1/2, and is designed to help provide guaranteed income during retirement. QLACs are purchased with funds from an IRA or other qualified retirement account.