American Annuities - Brat Princess

Sunday, March 03, 2013

American Annuities

In the United States, to provide them a safe and consistent cash flow after retirement, many people will invest on american annuities. It is a form of different financial products sold by insurance companies for an American individual to invest on according to his/her needs. To buy an annuity is a popular choice for investors who want to receive a steady income especially after they retire.

There are three main types of annuity insurance – Fixed, Variable and Indexed.

How much you receive depends on whether you opt for a guaranteed payout (fixed annuity) or a payout flow identified by the performance of your annuity's actual investment (variable annuity.
The third type (Indexed) is a little complex - a mixture of both Fixed and Variable annuity. It offers a slightly lower interest rate because of the potential higher growth. The annuity is tied to a specific index. If the index increases, depending on the contract and the contributed amount, the contract owner gets a portion of that growth.

The easiest way to narrow down the selection is to decide what you want exactly in your product or you can consult an insurance expert before finalizing your investment.

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