There are lots of reasons a variable annuity is perfect for your personal circumstances. In fact, a variable annuity is so adaptable that it can meet an eclectic range of needs, whether they are purely financial or just lifestyle requirements.
To find out more about a variable annuity, read through some of the key points below and hopefully you will have a better idea of what a variable annuity can offer you.
An annuity is available with a wide selection of options, making the perfect for a range of personal circumstances. For example, you might want to take out a single-life or joint-life annuity. A single-life annuity supplies you with an income for the rest of your life and ceases on your death; on the other hand a joint-life annuity will carry on paying out to your spouse after your death. There is even choice as to how much is paid out; as you may want half or perhaps even more of the original income to be paid to your other half. There is even inflation proof annuity available.
If you have health risks or certain lifestyle choices have reduced your life expectancy then you can look at an extra or an impaired life insurance fund. This type of annuity is appropriate if lifestyle factors, such as smoking or drinking, makes it possible that your life cycle will decrease compared to the average person. Other conditions that may make you eligible for this type of policy include angina amongst other health problems you may experience. Accordingly, if there is a fear that you will not live beyond 75 years then you may still be able to benefit from an annuity you are associated with.
If you choose to take out an annuity then even if you die before you reach the appropriate age your family can still benefit from annuity protection. If you choose this option, a spouse of family member can be entitled to a lump sum upon your death. Although, this would be subject to a tax charge; it does ensure that your money will not be lost and that your family will receive some form of financial support. This addition means that an annuity can aid your family when they have to pay for your funeral ceremony and can make the entire experience a lot less stressful.
With an annuity you will usually find that different providers may offer you more competitive rates. So if you are interested in an annuity then it is a good idea to shop around and look at what is on offer and how it suits you. Firstly, you could talk to your pension provider, discuss your options and only then research the market. For your research you may decide to contact different companies or utilise an online service to list rates and best deals. You may like the information on variable annuities at investmentsense.co.uk may be the best place to start.
One of the main positives of a retirement annuity is that it allows you to receive the stability of a fixed income, which you receive in place of your pension. This gives you a feeling of stability that comes with knowing specifically how much you will have to spend and live on; you will then be in a much more suitable position to budget. Due to this, having an annuity is like having an annual fixed wage; which means that you will have the security and safety that you are used to.
The points above should give you an indication of some of the benefits of a variable annuity, which may help you if you are thinking about opening a new savings account.
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Variable annuities - Investment guidance, advice and services for managing your finances.
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