At Crystal Insurance we offer industry leading Annuity Insurance policies at competitive prices to Washington DC and the businesses and commercial properties in the surrounding areas. We are committed to helping you find the right policy for you, at the right price.
What is an Annuity?
An annuity is a financial instrument that is most often used to give the purchaser an ongoing private income following retirement. The purchaser arranges an annuity contract with an insurance company. In exchange for handing over a lump sum to the company, the purchaser will get a regular income from the date the annuity begins. In the majority of cases, an annuity is bought with the accumulated fund in the purchaser’s pension scheme.
Like all financial instruments, there are many things to be considered before opting for any given annuity scheme. Therefore, it is advisable to speak to expert and impartial insurance agents like us to help you make the right decision. There are different types of annuity, and there are a number of choices you need to make that will affect how the annuity will work.
You will need to decide whether you want an income for life, or just for a specific period. You will also need to choose whether you want a fixed or variable income annuity. Finally, you have to choose between deferred income annuities or immediate income annuities.
Insurance companies invest the funds used to purchase annuities into various investment products. If you opt for a fixed income annuity, the money you receive monthly will remain the same regardless of how the investments are performing.
In contrast, if you opt for a variable income annuity, the amount you receive each month will vary according to the investment performance. This gives you the advantage of getting increased income if the investment value rises, but it also exposes you to the risk of receiving lower amounts of money if the investment performs poorly.
Another important consideration is whether you will want access to the annuity fund itself. With some annuity contracts, it is possible to access some or all of the remaining fund. However, there may be tax implications if you take money out of the fund.
Choosing the type of annuity that is best suited for your own personal situation is vitally important. If you choose the wrong product, you could end up in financial difficulties that will beset you for many years. You could even lose all the money you invest in your annuity if you buy a high-risk product. Be on the safe side and talk to us first.