Annuities

Annuities – Simply Explained

An annuity is a contract between you and an insurance company in which you make a lump-sum payment or a series of periodic payments, and in return receive regular disbursements, beginning either immediately or at some time in the future.

 An annuity provides an income for the rest of your life, no matter how long you live. It can also be setup as a joint annuity, providing a lifetime income until the death of both you and your spouse.

It can be tailored to meet your specific needs. In addition to choosing between a lump-sum payment or a series of payments to the insurance company, you can choose when to annuitize your contributions, that is start receiving payments. An annuity that begins paying out immediately is referred to an immediate annuity while one that starts at a predetermined date in the future is called a deferred annuity. The duration of disbursements can vary. You can choose to receive payments for a specific period, guaranteed until your death, or you and your spouses’ death, regardless of how long you live.

There is great flexibility in how annuity plans are setup. They are highly customizable.

To learn more about annuities, please contact me.

Selman Insurance Services