What is Annuity Insurance?

Annuities are contracts that guarantee you regular payments, usually after you retire. Instead of offering a lump sum like life insurance does when someone passes away, annuities ensure you have a steady income stream for as long as you need it. You can either make one large payment or spread out contributions over time, with payments starting when you retire, typically at age 65.

Why do you need Annuity Insurance?

Annuities can be a great way to ensure you don’t run out of money during retirement. If you’re concerned about outliving your savings or want a guaranteed income in addition to Social Security, an annuity can help give you peace of mind. It’s a smart option for anyone planning for a long, secure retirement.

What does Annuity Insurance cover?

Annuities provide you with regular payments, either for a set number of years or for the rest of your life. Here are the main types:

  • Immediate Annuities: You start receiving payments soon after you invest.
  • Deferred Annuities: Payments begin at a future date, often when you retire.
  • Fixed Annuities: You get a guaranteed, unchanging amount of income.
  • Variable Annuities: Payments can change depending on investment performance.
  • Indexed Annuities: Payments depend on how a stock market index performs, but with less risk than variable annuities.

What are some Frequently Asked Questions regarding Annuities Insurance?

Q: What’s the difference between annuities and life insurance?
A: Life insurance pays your loved ones a lump sum when you pass away. Annuities, on the other hand, provide regular income for you while you’re alive, typically during retirement.

Q: When should I think about getting an annuity?
A: Annuities are great for retirement planning, especially if you’re close to retiring or want to make sure you have a steady income after you stop working.

Q: Are there any risks with annuities?
A: Some types of annuities, like variable and indexed ones, have risks tied to market performance. However, fixed annuities offer a guaranteed income, making them safer.

Types of Annuities Explained

  • Immediate Annuities: Great for those who need income right away after making a lump sum payment.
  • Deferred Annuities: Ideal if you want your income to start later, like at retirement.
  • Fixed Annuities: A safe choice if you want predictable, steady income.
  • Variable Annuities: Higher potential returns, but with more risk.
  • Indexed Annuities: Offer growth based on stock market performance, with less risk than variable annuities.

How Much Does An Annuity Cost?

The cost depends on your age, the type of annuity, and when payments start. Immediate annuities generally require a larger one-time payment, while deferred annuities can be funded gradually.

Why should you use ArcLight Insurance to secure Annuity Insurance?

At ArcLight Insurance, we know retirement planning can feel overwhelming. That’s why our team of experts is here to guide you through choosing the right annuity for your needs. We’ll help you find a plan that guarantees the income you need so you can retire with confidence.

Take control of your retirement today! Contact ArcLight Insurance for a free consultation and discover how the right annuity can secure your financial future.