Tag Archives: Annuity

Earn Cash by Comparing and Selling Annuity

by gumtau

The term annuity is used for the payment of certain lump sum amount of money to an individual in the installments over the period of time, rather than giving it at once. It can also be termed as structured payment plan where a company, who is acting on behalf of either a government institution or a financial agent, pays to an individual.

It may be possible that you haven’t come across the term annuity, but if you search around; you will found that there are many annuity agents exists. These agents constantly look for those who are ready to exchange their annuity with cold cash. If you want to do this, it is strongly recommended that you should do thorough market survey to secure best deals.

Once a suitable agent has been fixed, he will process all the transaction. You can get the entire amount in cash, which you are supposed to receive as annuity in the future. Only taxes, inflation rate factors and commission will be deducted from the estimated amount. These agents generally complete all the formalities very quickly, as they don’t want to loose a potential customer. It is advised that prior to getting involved in any such contract of encashment of annuity, do the market survey and get benefited.

To know the estimated amount you will receive from the annuity, one should ask for the risk-free quote from the agent. Such risk-free quote keeps you immune from any obligation of pursuing the transaction if you don’t want to undergo the contract. You don’t receive the entire amount of projected annuity; because it is reduced by the agent’s commission (about5%-25%), taxes, processing fees, cost of legal stamps, etc. If you want to compare the estimated annuity amount to receive from the agent, it is better to gather as many quotes as possible and study them to the minute details.

To protect the mutual interests of an individual as well as the company, the later generally frame the rules and guidelines for each transaction. But as usual, it is in favor of the company. Therefore, you have to go in minute details for the quotes. If you want to be on the safer side, it is better to know the required information about the transaction.

While buying the annuities, lot of financial companies set different rules for two different transactions. Some of companies issue the check upfront the moment you finish the required documentation where as for many companies you have to wait for some time. So it is better to know few essential facts about the transaction you are going into, like what payments you have to make? What documents you have to submit? Or, when would the check be ready? Some of the companies may just ask you to sign few documents, where as others may ask you to come frequently and waste lot of time.

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People May Compare Retirement Incomes With Whole Of Market Annuity Quotes

Many people save towards their retirement with personal and occupational pension schemes. Most of the schemes can be categorized as money purchase schemes. This means that when the person retires the money invested in the pension fund is converted to cash and used to purchase an annuity. There are many different options when purchasing one of these products, such as level and escalating annuities, and single life or joint life annuities. This article explains some of those options, and shows how an annuity quotes can be used to let a person estimate the amount of retirement income they will get.

Most pension schemes other than final salary schemes, and other defined benefit schemes, can be categorized as money purchase schemes. A person, and possibly also their employer, make contributions into a pension fund, which is invested in the financial markets with the intention of building up a suitably large pension pot by the date of the person’s retirement.

On retirement the pension pot is then used to purchase an annuity. These are a type of insurance, which are sold by life insurance (or life assurance) companies. They provide a guaranteed lifetime income, regardless of how long the pensioner lives for. This is desirable as it protects pensioners from the danger of exhausting their pension pot.

Those who buy an annuity to provide a retirement income will normally have one of the following types of pension: a personal pension, a stakeholder pension, an Additional Voluntary Contribution (AVC) or Freestanding Additional Voluntary Contribution (FSAVC) scheme, or a retirement annuity contract. Those who are members of an occupational defined contribution scheme may find that the scheme managers purchase the annuity for them, but they are entitled to choose the type of product which they want.

There are many different types of product, allowing the retired person to choose something suitable for their needs. The most basic choice is between a single life or a joint life policy . Joint life annuities will provide a pension for a person’s spouse or partner. These are therefore most normally chosen by couples, unless the spouse or partner already has an independent source of retirement income.

Another choice which can be made is between a level, and an escalating annuity. Level annuities will pay out the same income throughout the rest of a person’s life, while escalating annuities will constantly increase. The increase may be a fixed rate (e. G. 3%), or it may be linked to the Retail Price Index (RPI).

A third option involves a guarantee period. With a standard policy, if the pensioner was to die very soon after buying the annuity, the payments would simply stop. This would mean that the pensioner’s estate did not really benefit from that person’s lifetime of saving. With a guaranteed annuity, the life assurance company will pay the annuity for some predetermined period (usually five or 10 years) even if the pensioner dies.

All these options affect the amount of retirement income. For example a joint life policy will pay out less than a single life policy, because the life company have the additional commitment of funding the spouse’s pension. An annuity quotes is a simple online tool, which allows a person who is approaching retirement to estimate the effect of different options on their retirement income.

When approaching retirement it is vital to shop around using the open market option and to make sure that you use a broker that advises from the whole of market for annuity quotes.

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Annuity Quotes Can Be Very Easily Found From Comparison Websites

Although some people have the benefit of final salary pension schemes guaranteed by their employer, most people who wish to ensure they have more retirement income than the state pension provides, save using either a private pension plan (PPP), or an occupational defined contribution pension scheme. The funds put into the scheme are invested by the pension fund manager. For younger people there can a major proportion of the fund invested in equities, as these provide the best opportunities for long term growth, but as the person approaches retirement age the fund manager will change the balance of the fund to emphasize cash and government bonds, protecting the growth that has already been achieved. On retirement, part of the pension fund may be taken a lump sum, and the remainder is either used as an unsecured pension (USP), or an annuity may be purchased to provide a guaranteed life-time income. Annuity quotes may be very easily found online, as there are now several comparison websites in operation.

When a person is approaching retirement age they must make some choices about what to do with the contents of their pension fund. According to current regulations the pension fund cannot be touched until age 55, and if the fund owner survives to age 75, purchase of an annuity becomes compulsory.

A lump sum can be taken from the fund after age 55. This can be up to 25 per cent of the fund’s value, and no tax is charged on this sum. In the case of small pension funds the government allows 100% to be withdrawn, under the so-called triviality rule.

The remainder of the fund can either be used to purchase an annuity, or it can be left in the fund where it can provide an unsecured pension (USP). Note that USPs are sometimes called income drawdown.

Income drawdown, or unsecured pension, is not suitable for all retirees. One benefit of this option is that the fund will remain invested, and it may continue to grow in value. Additionally if the retiree dies the fund will form part of the estate, and can be inherited by the beneficiaries of the will.

The danger with income drawdown is that if the retiree has a long life after retirement, then the fund will become exhausted. Actuaries can calculate the point in a person’s life at which income drawdown becomes a worse option than annuity purchase, and it is always recommended that those using drawdown employ an independent financial advisor to conduct regular reviews.

Annuities are an insurance instrument, purchased from a life assurance company. The life company takes the pension savings, and guarantees the retiree a life-time income. The life company is, in effect, assuming the risk that the person may live for a long time, in which case the company would lose money on that particular annuity sale. This is however simply the trading of individual risk for collective risk, which is inherent in all insurance business.

Annuities can be bought from any life assurance company, there is never any obligation to buy from the pension fund manager, although they will normally make an annuity offer. Annuity quotes from many companies can be very easily found, as there are now several comparison websites in operation.

Annuity Rates can find you the best annuity quotes from the entire annuity market. We can also find you the best over 50 life insurance.

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Selling an annuity

There are various kinds of annuity you can find available in the market today. It is basically a product that allows you to invest your money over a fixed period of time so that you can benefit from it financially. In addition to the interest you receive on the annuity, it can also help you get a guaranteed payment for a lifetime or may be for a fixed period of time after your lifetime. This is something that a lot of people do to protect their families when they are not there to take care. Insurance is one of the most common annuity people invest in to get the various benefits against their life. Moreover, an annuity can also help if you have are in an urgent need of money and you can chose to sell annuity or sell annuity payments that are due in the future. This can help meet your financial obligations immediately. However, if you sell annuity, you do not get the same amount of money as you would have got in your regular payments. After all, you are going to get the lump sum amount from the coming buying the annuity. Even it is also very common among people to sell annuity payments due in the future.

If you have decided to sell annuity, it is important that you decide the various terms you are going to sell these at. Once you have done so, it will be good to look around for various companies buying the annuities. You can choose the best one among them based on the terms and the prices. You will definitely need a lot of documents before proceeding for the sale of your investment made in the annuity. Once you have all the documentation needed by the company buying the annuity, it is worthwhile to submit all of them to the company and you can get the check from the company once it has been approved by the court. While doing so, you will also need a copy of the annuity and the last check submitted by you. Getting the money from the company might take a few weeks due to the various formalities involved in the process.

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Getting The Best Annuity Quotes Online

by e_monk

Choosing an annuity is an important decision because it determines your financial future. All of your life you work for your income and suddenly the ability to choose what you earn is taken out of your hands. However, you still have control of what kind of annuity you decide to have. This is an important decision and you should use the open market option (the right to shop around) to make sure that you make the very best decision for you and your money.

Viewing annuity quotes online can be very beneficial as you can get a greater outlook over what the market currently can offer you. The online tools allow you to type in your details and figure out how much a few extra years of work would impact your retirement plans and the amount of income you could receive through your annuity.

By searching for annuity quotes online you might realise that you are eligible for an enhanced annuity rate which your current pension provider did not make you aware of. You can receive an enhanced rate if you have a medical condition, employment history or other reason why your life expectancy might be shorter than the average person of your age. You can even get smoker annuity rates that are higher than the normal rates.

This allows the pension company to calculate an annuity which they estimate they do not have to pay out for you for as long as the average person. One example is if you live in a poorer area than the national average where life expectancy is lower.

Using the internet not only allows you to access more information on annuities but it also helps you to realise what other companies can offer you. Annuity contracts can be different and different providers, especially independent or  specialist providers, may be able to offer you a different type of contract to the average high street provider. For example, joint annuities have become popular lately as it allows partners to be included in the annuity. This offers peace of mind to many couples who want the other to be cared for when they die.

One pension company said, “We like to encourage our customers to use the open market to find competitive deals. This allows them to really become well informed on what the market can offer and gives them the security they need that their money is going into the right place.”

Want to use a free online annuity calculator? Visit http://sigmaannuities.co.uk for all your annuity needs. They are chartered financial planners and can offer you independent pension and retirement advice.

If you are looking for annuity rates visit http://www.myannuityrates.co.uk/ for free quotes.

Learning About Annuities And Annuity Quotes

Many people have heard about annuities but really do not understand what they are all about. If you are one of those people perhaps this article will be of some assistance. Annuity quotes are from an insurance company telling you what your income from the annuity would be depending on the type selected.

If you want to have some extra money, when retirement time rolls around, and you want to have the money you invest earn interest without paying taxes perhaps this may be the type of investment you would be interested in. There are lifetime and short term annuities available.

Annuities are written by insurance companies who must be licensed by the state. They offer you a contract which will give you an income on money you invest. This requires that you make an initial lump-sum payment, deposit, premium, investment or contribution which will earn interest. There are a number of different annuities to fit many situations.

First, there is no limit to the amount of money you can put into this fund. There are fixed annuities and variable annuities. The fixed annuities can be broken down into immediate and deferred. In other words, an immediate annuity will start paying you immediately and a deferred puts off paying until a date you indicate.

Deferred annuities are further broken down into Fixed Index, Multi-Year Guarantee Rate and Traditional Fixed. The way the interest is compiled differs with each one. Variable annuities have a stock market portfolio and there is no guarantee regarding the amount of interest earned. It can be very high or very low.

The most important thing, when considering making an investment of this kind, is to contact the prospective company and discuss with them exactly what you want to accomplish. Do you want to have more income at retirement? Do you want a short term or a life term policy? Do you want a death benefit so that if you pass away your heirs receive what is left in the fund? These are all questions that need to be answered.

It must be remembered that the rate of return depends entirely on the type of product chosen. Some, such as variables have a fee attached that is charged with each portfolio transaction. One advantage that many people find is that you do not have to pay taxes on the interest earned until it is withdrawn. Also the funds are paid out as agreed in the contract.

Some people who have 401Ks or IRAs when they retire roll this money over into an annuity as they will not have to draw it out at a certain time as those investments require. It can stay in the fund and earn interest until you decide you want to start drawing on the policy.

People who are still working sometimes have a monthly amount deducted from their paycheck and paid directly into an annuity account. This allows the money to earn interest and build up until they are ready to stop working. This usually amounts to a considerable sum and helps greatly with their income upon retiring.

All you need to know about annuities and annuity quotes in the UK now in our complete guide to find a top UK annuity on http://www.annuitycentre.co.uk

The Truth about Fixed Indexed Annuities video is one of the best explanations on why these powerful retirement products are misunderstood. Many of the miscon…
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