Annuity Question Hawaii HI

Reader’s Question:

I thought I had heard it all, but I guess not. What the heck is an immediate annuity? A fellow golfer was telling me this was a plan he purchased. Who offers them?

Alex

Ewa, HI

Hello Alex,

Immediate annuities are growing in popularity. Most owners tend to be at a point in life where they want to enjoy additional income for the rest of their life. Just as social security provides retirement income for the rest of your life, so do immediate annuities. Your insurance agent can help you structure a plan that projects your social security benefits and measures the return of the immediate annuity.

When you purchase an immediate annuity, you are paying the insurance company to provide you a lifetime benefit. You can structure receipt of these payments. If you live to be 200, you will continue to receive these immediate annuity payments. That really sounds pretty good doesn’t it?

As the immediate annuity premium is paid to the insurance company, the funds are protected against creditors. The most that is ever exposed is the amount of the payments. Business owners tend to like this feature. In many states, payments of immediate annuities are also protected. Again, check with your agent and good luck on the golf course.