Lifetime Annuity can be defined as a contract between the insurance company and applicant. After taking up this scheme you can be assured of a steady income for your entire life regularly. Further, there are many policies of this scheme such as single life policy, joint life policy and period certain policy. In the first policy you will receive regular monthly income for lifetime.
However, it is to be noted that only you can avail the benefits under this scheme until you are alive. In the second policy of Lifetime Annuity you can provide financial security to your spouse even after your death. But the income that is received here is less than the single life policy. In the third policy you can provide financial support on monthly basis to a beneficiary in case of your premature death for a period of time mentioned by you in the contract.
Besides this you can even opt for Retirement Annuities. For investment in these you will have to make a payment to the insurance company initially. Then after a certain period of time you will receive payments depending on the returns on the money invested by you. This payment can be on periodic basis or on regular monthly basis. Further, it is to be noted that the returns received by you will depend on the amount of money you have invested and the type of annuity contract chosen by you. Apart from these there are personal factors as well which play an important role in deciding the amount of money that will be received by you from Retirement Annuities such as age, health and sex of the person. Hence, this scheme enables the retired people to lead a relaxed life without any financial worries.
Therefore, if you have a decent sum of money for investment then nothing can be a better investment scheme than Retirement Annuities.
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