What is Annuity in Insurance ?

An annuity is a fixed amount of money paid to you when a certain event takes place. In some cases, this can be an inheritance amount or a type of insurance guaranteed to provide monthly income for a set amount of time. Annuities are one of many forms that life insurance can take, and annuities can also be how investments pay out.

There are a few common types of annuities you should be aware of. These are charitable gift annuities, retirement annuities, and structured settlement payout annuities. A charitable gift annuity is used in estate planning, and allows someone to make payments to a charity as part of their will. A retirement annuity is exactly what it sounds like, in that it is a single payment or a series of payments made to an individual after retirement. A settlement annuity comes into play after a legal settlement or something like winning the lottery.

Hiring a company to help with annuity management guarantees that all legal documents are set up correctly and that you do not need to worry about nasty surprises or tax obligations when the time comes for the annuity to be paid out. Many people set up an annuity contract that, while legally correct, doesn’t meet the needs of the individual or the family. Annuity Capital LLCĀ  was founded with the intention of avoiding this disconnect and making the process easier to understand for all parties involved.

If you are planning to set up an annuity or are the beneficiary of an annuity to be paid out in the future, get in touch with someone that understands the complicated legal world of annuities. Their help can be invaluable in ensuring that all documents are signed and set up in a way that benefits all parties involved, and that the annuity functions as it was intended.

Posted in: Insurance