How Can an Income Annuity Protect Against the
Risk of Living Too Long?
The purpose of an annuity is to protect against the financial risk of living too long…the risk of outliving retirement income…by providing an income guaranteed* for life.
In fact, an annuity is the ONLY financial vehicle that can systematically liquidate a sum of money in such a way that income can be guaranteed for as long as you live!
Here’s How an Income Annuity Works:
The annuity owner pays a single premium to an insurance company.
- Beginning immediately or shortly after the single premium is paid, the insurance company pays the owner/ annuitant an income guaranteed to continue for as long as the annuitant is alive. There are other payout options also available.
- With a cash refund provision the insurance company pays any remaining funds to the designated beneficiary after the annuitant’s death.
Seeking a secure life long retirement income? Click the video box to left of this post.