Home » Life Insurance » Life Insurance and Annuity Investments – Choosing The Right

Life Insurance and Annuity Investments – Choosing The Right

Life Insurance and Annuity Investments – Choosing The Right

Balance For You

Life insurance is an important protection for your family, but it can also be a

valuable investment. There are a number of life insurance options that are

also wise financial choices which provide you with a return on your

premiums. An annuity investment is one option in the insurance market that

can not only help you protect your investment, but can usually be included

with your life insurance policy, making investing safer and easier.

What Is An Annuity?

An annuity is a contract between you and an insurance company in which

you pay a premium or lump-sum payment with the promise of a protected

retirement income in the future. It is just one of the many types of

investment opportunities available through an insurance company. It is

essentially the opposite of life insurance—it covers you during the additional

expenses of living longer than expected, as opposed to life insurance which

covers you should you die earlier.

Types Of Annuity Investments

Fixed Annuities—These types of annuities offer either a fixed payment or a

payment based on a fixed interest rate. While these may not yield the best

investment growth, they can offer security to those who prefer it. They offer

payments for a fixed term, or until death.

Variable Annuities—These types of annuities can give you the option of

investing in a more risky environment, but potentially yield higher returns

and function more like traditional investment opportunities. These

investments provide you with the option of passing the remainder to your

heirs after your death.

Annuities And Insurance

Life insurance protects you in the event you pass away earlier than expected;

annuities protect you should you live longer than you expect or have a

greater financial need in your retirement than planned for. Creating a

balance between these two types of insurance products is an important part

of financial and retirement planning. Both annuities and life insurance are

important purchases, but finding the right balance will depend on a number

of circumstances such as your age, your family size and marital status, and

your income. It is also a good idea to balance your investments in general.

Annuities can protect you in your retirement, but should not be your only

retirement investment.

If you are looking for the right balance between insurance and annuities,

contact an insurance agent who will help you get the information you need to make the best choice.


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