Welcome to Zimmerman & Ray Insurance Services
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Most people fear that they will outlive their income and a pension plan may not cover their post-retirement expenses. If you have any funds in savings, CDs, IRAs, 401(k)s or mutual funds, an annuity income works like a boon. It allows you to convert a certain percentage of your retirement funds into income payments periodically, either before or after retirement.
Annuity is an insurance product where you receive a fixed and guaranteed lifetime income on a monthly, quarterly, semi-annual, or annual basis. You can opt to receive these funds at retirement, after you retire or even before, as per your insurance contract.
In its most basic form, especially after retirement, annuity is almost the same as a pension plan. There are different features in annuity insurance and you can decide which ones suit your needs best. Among various other customizable options, you can choose whether to:
Along with the flexibility an annuity income provides, you can be sure that your retirement funds will remain unaffected by stock-market fluctuations or market downturns. Your investment will be locked in and guaranteed against stock-market performance. It allows you to safeguard the money that you have set aside for the future, as well as budget for your current expenses in case you opt to receive the returns periodically.
Annuity incomes can also be set up with death benefits for your estate, but the policy issue age will depend on the type of plan and benefits you select, as well as the tax qualification of the money you use for it. Get in touch with us today to know more about how these plans work.