Best Annuity Rates

Annuity Rates is a contract between an individual and an insurance company promising lifelong income in exchange for an upfront payment.In practice, this arrangement gets fleshed out in various ways. The most common scenario is when retirees see that their savings aren't sufficient to last through all of retirement, and make an upfront payment to a life insurance company in exchange for a promise of life-long monthly income. This arrangement is beneficial to both parties; retirees gain the peace of mind that they won't outlive their savings and insurance companies make a profit off retirees who live shorter than expected. annuity rates

Beyond the funding distinction that separates deferred from immediate annuities, there is also the different ways annuities generate income. When the insurance company receives payment, they invest the money in one of three different ways:

1. Fixed Annuities: interest earned from debt instruments like CDs, bonds, and mortgages.
2. Variable Annuities: interest earned from equity instruments like stocks and commodities.
3. Indexed Annuities: interest earned from broad market indices like the S&P 500.