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Life Insurance Policy Provisions, Options and Riders <<<<<>>>>>
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Florida AnnuitiesAnnuity: A good investment decision
An annuity is a vehicle for liquidating a sum of money through installment payments. An annuity is the opposite of a life insurance contract. Life insurance is concerned with how soon we will die. An annuity deals with how long we will live. A life insurance policy creates an estate by the periodic payment of money into the policy; an annuity's principle function is to liquidate an estate by the periodic payment of funds out of the contract. Structure and Design of AnnuitiesFunding Method ~ (1) Lump Sum or (2) Periodic payment Date Annuity benefit payments begin ~ (1) Immediately or (2) deferred until a future date Investment Configuration ~ (1) Fixed (guaranteed) rate of return or (2) Variable (non-guaranteed) rate of return Payout Period ~ (1) Specific number of years or (2) For life
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