Annuity Payments by primusboy


									Annuity Payments
Annuities are a series of payments made by an institution like an
insurance company to the annuitant at regular intervals of time over a
fixed time period. The payments are fixed and may be on a yearly, semi
annual, quarterly or monthly basis. Generally, there are two types of
annuity payments called “ordinary annuities” and “annuities due”.
Ordinary annuities require payments at the end of every period until the
maturity period of the investment. For example, with bonds, usually the
seller pays coupon interest payments to the buyer at the end of every six
months. However, sometimes annuity payments will be made at the beginning
of each period like a rent payment. These are called “annuity due”.
Depending on the frequency of annuity payments, annuities can be divided
into deferred annuities and immediate annuities. In immediate annuities,
annuity payments are made at much frequenter intervals. Deferred
annuities will make the annuity holders receive payments depending on the
nature of the annuity. If the deferred annuity is a fixed deferred, the
holder will get the guaranteed rate of return at regular intervals over
the life of the contract. If it is variable deferred annuity, the
payments depend on the performance of the underlying investment. This
means the annuitant will not receive any guaranteed amount. However, the
payments under the variable annuities are tax-free or tax-deferred.
There are several types of annuity payments depending on the nature of
the annuity. If the annuitant or the nominee receives payments after the
fixed period in spite of any contingency, such payments are called
“annuity with period certain”. If an annuity payment continues after the
death of the annuitant, it is called a “life annuity” payment. If it
continues over the annuitant’s life or for a fixed period (whichever is
longer), it is called “life with period certain”. The latest version for
annuity payments is called “equity-indexed annuity payments”.
It is not advisable for the annuitant to get cash value of the annuity by
cashing out, unless the annuitant is under financial stress. The ultimate
responsibility of cashing out an annuity and getting the payments rests
on the shoulders of the annuitant.
Cash For Annuities provides detailed information about cash for
annuities, annuity brokers, annuity buyers, annuity payments and more.
Cash For Annuities is the sister site of Senior Settlements Info.

To top