What Annuities Are Nebraska NE
Reader’s Question:
I’m from Nebraska, and I am going to retire in a year and thinking about my financial options. One of my options is buying an annuity. How do annuities work?
Gilbert
Lincoln, NE
Gilbert, annuities basically work like a pension. It will allow you to receive a guaranteed income for the rest of your life. Usually, those companies offering annuities are also those issuing life insurance products. The difference of an annuity with a life insurance is you get living benefits that you can enjoy in your retirement years, while a life insurance gives a death benefit, which can be claimed only after you die. Both are designed to serve specific purposes, but if you are looking for a steady income for the rest of your life in your old age, then annuity is a good choice for you. This is also better for those people who have no family or next of kin who will be left behind to appoint as beneficiary.
Upon retirement, usually an individual can withdraw a lump sum from his or her 401k account. Through this fund, you can opt to buy an annuity through what is called a Single Premium Annuity or also known as immediate annuity. This one-time payment will now enable you to receive a monthly income after just a year. Now, the catch here is, upon your death, all the money you paid goes directly to the coffers of the issuing company. Please call your insurance agent in Nebraska for more details.
Tags: advice, annuity, life insurance
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