Fixed Annuity & Income Annuity - Be tension free in Your Future
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An investment in an insurance company to receive a fixed income over a certain period is called Annuity. Fixed Annuity and Income Annuity are two kinds of Annuity Plans. This plan exists as long as you live or it can be continued for a certain period of time that you decide earlier.
People willing to invest their money to get a good amount of income after their retirement, can make their investment in a Fixed Annuity Plan. In this case, they will be receiving a fixed income at a flat rate of interest periodically. Erratic rates of interest in market are not something to depend on here. Also they need not wait till their retirement to invest their savings. They can do it whenever they wish to and only a month’s patience would get them to their first receipt.
This is a very old concept of investment, and over the years, people according to their ability and wants, has been investing their money in this plan. This could be of kinds–one is short-term and the other is long-term. Generally bank-investments are of short-term schemes, and investments in the post office or in mutual funds are of long-term schemes.
Fixed Annuity is something that is affordable for almost everyone because it’s not necessary to invest a lump sum of money, you can invest from very low margin also. Incomes received on monthly basis are called MIS (Monthly Income Scheme). Once the maturity period is over, you will get back your invested money with a commission or bonus and you can invest it again immediately after you receive it.
People who don’t want to wait till their retirement, and want to invest their savings in an insurance company, can be a part of the Income Annuity Plan. This plan is eligible for you at the age of 55 if you are a US citizen. When you get to 55, you can invest your savings in an insurance company which will lead you to right after your retirement to get a periodical payment. This plan is in the market since 1800, and has become quite familiar to everybody.
The similarity between the Fixed Annuity and the Income Annuity is you need not be a senior citizen or a retired person to be a part of it. For the Fixed Annuity Plan, you would have wait till the age of 55 providing being a US citizen, but the Income Annuity Plan is accessible at any point of your life.
Think of depending on nobody after your retirement, not waiting for your ancestors to give you the money you need to spend the rest of your life, or not being a married person, you would not have to look for anybody to help you. The Fixed Annuity Plan or the Income Annuity Plan could really fulfill this dream of yours. So, decide your own future, be a part of either of these plans, and get all of your worries about your future out of your mind.
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