The very mention of the term retirement annuity now brings a smile on the the face of the retired. This is due to the fact that this scheme has not only brought about a solution for their fund problems but has also made their life more secure and convenient. This is an amazing opportunity to live life on your own terms even during the twilight years of your life. This scheme also provides life annuity apart from the others.
Retirement is a phase of life wherein you usually tend to feel vulnerable. This is due to the fact that at this point of life you are left with neither the regular source of income nor are you in a position to work. This apparent dead end leaves you sick with worries pertaining to the life that is awaiting you. With such bleak prospects the future surely looks dark, however, that is no longer true. The market is like santa’s bag. It has the desired solution you require to gear up your life gift wrapped in the form of various opportunities and schemes. The only step you need to take is to wish for it and you get your gift. The retirement annuity is such a gift wrapped opportunity for you. Retirement annuity can be of various types. The different types and their basic information is as follows.
The types of retirement annuity are namely joint life, last survivor annuity without return of purchase price, joint life, last survivor annuity with return of purchase price and life annuity. The first type of this annuity scheme refers to the scheme that you will be entitled to the annuity amount along with your spouse. That is to say that both you and your spouse will receive life time annuities. Here you will not receive the purchase amount from the insurance company. The second type is almost similar to the previous scheme with a slight variation. In this case also both you and your spouse will receive annuities for life. However the bonus point of this scheme is that in this scheme the insurance company returns back the purchase amount as well. Purchase amount is the price that you had paid to buy the annuity. The purchase price is given to the nominee. The third type has a scheme wherein you receive the annuity payments for your lifetime and after your demise these payments stop.
The other form of retirement annuities are life annuity guaranteed for 5, 10, and 15 years and life thereafter and life annuity with return of purchase price. These schemes also have their respective implications. In the former plan you will get the annuities for the rest of your life and after your demise the purchase price of the annuity will be given to your nominee. The latter plan provides you with the annuities for the fixed term of time. The term period may vary from 5 years to 10 years to 15 years. The payment of annuity continues even after the term is over. In case the person opting for the annuity expires before the end of the term the annuity continues till the completion of the term. The money in that case goes to the nominee.
The options for retirement annuity and life annuity are many. It is now your task to study them well, compare and then choose the one that suits you the best and answers your requirements completely.
