Recognizing Pension and Annuity Insurance

What’s on your mind when you hear the words of retirement? Maybe there are still many people who think that pensions related. Things People aged over 50 or 60 years. Everyone has his own standards to determine. What is the cost of living in accordance with the lifestyle when retired later? Either by joining in a pension or investment program independently.

Once you have determined the retirement cost you want, you must determine what type of insurance you want. In connection with the payment of pension funds, you can use the annuity system. an annuity is a technical term in the field of insurance that refers to the concept of payment on a regular basis. Insurance companies distinguish annuities based on:

The Beginning of An Annuity Benefit

An annuity can be distinguished from its useful life. It’s called an immediate annuity. in which the insurance company will pay after one annuity period purchased. For example, if the annuity is annual, then the payment of benefits will be paid after one year of product purchased. Then there is the so-called delayed annuity. As the name implies, this annuity benefits after some time from the product purchase period. Usually, this product is purchased by someone while still working, to anticipate the needs in retirement.

How to Buy an Annuity

As with life insurance, buyers also have to pay a premium with a certain value depending on the period or period of payment of compensation. Premiums paid are paid once or single premium. This is payable once and the benefits will be earned according to the money. The insurance company has managed to pay to the customer during the agreed period. Then there is a fixed periodic premium in which the customer. Pays the same amount of premium for a fixed period of time (monthly or yearly) until the time. The payment of the annuity benefit is scheduled to arrive.

Payment of Annuity Benefits

These annuity payments are categorized in three ways. First is the fixed annuity, the annuity paid for a certain period of time, whether the customer is alive or dead. Second is the annuity of life that is annuity paid only until the customer dies? The third is a temporary annuity of life is an annuity whose. Benefits are paid until the end of a certain period or when the customer. Goes to the world, depending on which happens first.

In addition, annuity products are also differentiated based on the number. Of parties appointed to receive benefits and also the number of annuity benefits whether fixed or varied. Regardless of the annuity and product features selected, becomes the right choice for your insurance. hopefully, the information we convey is useful to the reader. good luck

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