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What is a variable annuity company able to offer me?

Updated: 9/16/2019
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11y ago

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There are many companies that offer variable annuities. Metlife and ING are two of the larger companies. They can work with your individual situation and create a good financial plan for you.

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Q: What is a variable annuity company able to offer me?
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About Annuity?

Saving money throughout your lifetime can be a helpful tool to obtain financial security. It can be difficult to decide which plan is best for you to save the most money for your retirement. Some people choose 401K plans or even IRA's, but there is another way to save money effectively.AnnuitiesAn annuity is a savings plan used for extended term growth and asset protection that can be used during retirement. Annuities have many advantages over other investment options. Annuities are able to provide a guaranteed interest rate, long-term growth, trust advantages and also secure the principal and earnings of your savings.With the annuity plan you choose, you are required to make a lump-sum payment or series of payments. The insurer consents to make periodic payments to you beginning at some future date or immediately. There are three types of annuities: fixed, variable and indexed.Fixed AnnuitiesA fixed annuity is a contract where the insurer makes scheduled payments to you for the period of the contract in dollar amounts. These payments will continue until the annuitant dies. Earnings and principal are guaranteed through your insurer.Variable AnnuitiesIn a variable annuity, the annuitant chooses from a variety of different asset options, in order to invest their payments. The investment options you select determines the rate of return on your payment and the number of scheduled payments you will receive in the future. The purpose of the variable annuity is to obtain larger payments if the savings performs well. But you will receive lower payments if the savings performs badly.Indexed AnnuitiesAn indexed annuity is when the insurer credits you with a profit that is determined by an alteration an in index. Also, indexed annuity provides a specified minimum that your contract value will be no less than. This happens regardless of index performance.The indexed annuity may be a security or may not. These are not listed with the security and exchange commission (SEC). The SEC regulates the variable annuities. The fixed annuity is not controlled by the SEC and is not a security.