WHAT ARE DIFFERENT TYPES OF ANNUITIES?
There are a number of different types of annuities, enough to boggle the mind of anyone at first glance. Furthermore, the companies that issue annuities are busy creating new types of annuities everyday to meet changing needs of consumers. While deciding the kind of annuity you should purchase, keep in mind your requirements, long-term financial goals, your age, and responsibilities. Annuities have three broad methods that insurance companies use to invest your money; Fixed, Variable, and Equity Indexed. Fixed Annuity – Pays a fixed set rate of interest, which could change periodically on the money invested in the annuity, in many cases, the annuity insurer will pay a guaranteed minimum rate of interest but also hold out the possibility that it will pay a higher rate of interest if market conditions permit. As a featured attraction many insurers will pay a bonus rate of 3% interest for the first year then pay no less than 3% guaranteed thereafter. Most insurers will usually pay closer
