Choose the annuity that’s right for you

Do you think your retirement is still far away ? It is not long time as it will come sooner. It is important to have enough money in our retirement age and one way to invest our money is have an annuity.
What is annuity ? I’ve explain at my old post , so I won’t rewrite again.

The very wealthy won't have need for an annuity, and annuities are often poor options for those with very small pension pots. But what if you're somewhere inbetween? Photo: HOWARD McWILLIAM
The very wealthy won’t have need for an annuity, and annuities are often poor options for those with very small pension pots. But what if you’re somewhere inbetween? Photo: HOWARD McWILLIAM

Choose the annuity is important as it will effect on your retirement income.

Shopping around to get more income
– You need to shop around to get the best income possible. The difference between the incomes you can receive between each provider can be significant so it pays to go down this route.

Declare your health conditions
– It sound strange that if you tell an insurance company that you have disease and tell them. It is important because the more a provider knows about your health and lifestyle, the better they can predict how long you’ll live. They can then use your circumstances instead of averages to calculate your income.
Getting an annuity based on some health conditions in your full medical history is called an enhanced annuity.

Look at the list below
1) Are you a smoker
2) Have you get high blood pressure
3) Have you been hospitalised because of a heart attack
4) Have you had a stroke
5) Have you ever had cancer
6) Do you have diabetes
7) Do you have angina and need medication
8) Do you have Parkinson’s disease
9) Do you have multiple sclerosis
10) Have you retired early because of your health

It is important to honestly give this list to your annuity provider.

Adding extras to your annuity

There are options to protect you and your loved ones but they lower the initial amount you’ll receive. You can choose to add each option, if you want.

You can
– have some or all of your income go to somebody else after you die
– give a payout or regular payment to someone if you pass away before you have received a specifies amount of income from your annuity
– protect your income against inflation.

You also can joint life annuity, an annuity pays for the rest of your life but you may want your annuity to pay to a spouse, partner or dependant after you die. You can choose for them to get the exact same amount you’re being paid or a percentage of it.
For more information about annuity, try this book ‘The 8 Great Lies of Fixed Indexed Annuities: Learn the Truth before it cost you!|

Annuity in finance is terminating stream of fixed payment. The fixed payment classified by period

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