Do you ever worry that the money you’ve saved won’t be enough to see you through to the end of your life? If outliving your retirement savings is a constant worry, a single life annuity could provide you with some much needed peace of mind. Investing in a single life annuity now, while you’re still earning an income, is a great way to set yourself up to enjoy those golden years to the fullest.
So, what is a single life annuity?
A single life annuity covers one person for the duration of their life. Basically, the annuitant makes a lump sum deposit which is allowed to grow over time and later, when they need the steady stream of income, they receive it in the form of regular payments. With a single life annuity, the payments will stop when the annuitant dies. Where the single life annuity differs from others is that unless you set a guaranteed period for your annuity, a lump sum or term-based payments will not be given to the annuitant’s beneficiaries when they die.
A single life annuity, however, does provide an opportunity for the annuity owner to minimize the amount of tax they pay on their investment income. This is a major benefit of owning an annuity.
Before purchasing a single life annuity
Do your research into this and other types of annuities to determine if this is the one that’s right for you and your savings needs. Contact a licensed agent for more information or to purchase a single life annuity.
Take action now and ensure that your retirement years aren’t plagued by financial worry. Whether you choose a single life annuity or another, choosing to invest in such a savings plan is a decision you won’t regret.