Financial Success with Immediate Annuities

Immediate annuities have been getting a good deal of attention lately. Simply stated what they do is allow an individual to convert a lump sum of money into an immediate source of income. With payments generally starting about a month after the immediate annuity is purchased, allowing you to supplement your current income.

Immediate annuities offer something no other retirement plans do the opportunity to start getting income right away by allowing you to receive a stream of income now, with payments structured to fit your needs.

Originally developed to provide guaranteed and convenient periodic income payments immediate annuities shouldn't be confused with deferred annuities. When considering this type of annuity you should be aware and keep in mind that they are not intended to offer liquidity or growth potential. This is a security in which the insurance company immediately begins payments for life or for a specified amount of time in exchange for your one-time contribution. What they do very well is provide dependable financial security in the form of a stream of income payments guaranteed to continue for the rest of your life or for a period you select.

Just like deferred annuities they can be fixed or variable, and also just like deferred annuities you are able to convert a lump sum into an income stream over a set period of years or for as long as you live. Providing income for your lifetime, regardless of how long you live.

Immediate annuities are funded with a single payment because income payments begin shortly after the contract is purchased. They are known as an excellent option if you are seeking the security and convenience of a periodic income payment. Often purchased by retired individuals who no longer work or who require additional income to supplement part-time employment.

Immediate annuities may also suit people who are near or already retired and want to fix the amount of income they will have every month.

You’ll find many immediate annuities are offered by life insurance companies.