Among all the Insurance and financial products on the market, the Life Annuity Insurance is a very interesting option, which can be incorporated into the Life insurance.
If you think that this option may be interesting for you, you should contact specialists who will advise you, such as Euroteide Insurance to make sure that you have the best information and the best advice for your benefit and that of yours.
Let's see in more detail what this product consists of, its characteristics and advantages.
What is an annuity
The annuity is a product that consists of a savings policy that guarantees the periodic payment of an amount of money upon payment of a premium.
With these insurance you can plan the savings to receive them again at any time you want through periodic payments.
Its operation is simple. The person who hires the insurance makes an initial capital contribution, in a single payment or in several. This amount is the savings that the insured will receive subsequently, at the time and in the manner established in the contract with the insurance company. The most common is to establish a monthly payment, although another periodicity can be established.
This product has the objective of alleviating the drop in income that may occur at the time the borrower insurance he is retiring. Although that is the main reason, it can be used in other situations, such as when it is needed to cover expenses related to the health or to have more money to travel or buy a car.
Life annuity can be used flexiblyAlthough it depends on the amount of money and you can plan the inheritance.
Characteristics of the annuity
To learn more about this product, it is important to know its characteristics. The main ones are:
- Your profitability does not depend on variable investment funds or other complex financial products.
- Operation is simple and transparent.
- It is possible to customization of conditions in the annuity.
- Generates stable income and for all life.
- The rent payment is guaranteed.
- Tax advantages. Some of the most notable are the exemptions in Personal Income Tax.
- After the death of the insured beneficiaries can continue or receive a pension.
- The value of the rent lifetime to receive is previously known and does not change despite the passage of time.
- To hire her it is necessary to be a homeowner.
- The income to be received depends on the value of the home depending on your location and other factors.
Incorporation of the annuity to the life insurance
This type of insurance is included in the modality of Life insurances, although also in that of saving. There are many reasons why an annuity can help you save, but it is perhaps more difficult to understand why it is a insurance of life. Mainly, it is because if the insured dies, spouse or other family members can benefit of the annuity.
This type of insurance It is especially recommended for people who are thinking about their inheritanceas they make everything easier. A) Yes, the policyholder can choose between different optionsAs the beneficiary receives the total of the single premium previously paid or receive a fee periodically, which can be monthly, quarterly or annually.
These policies offer an alternative to traditional inheritances, guaranteeing that the money will be received in the way that we have previously agreed. Thus, being able to make a reversal of the income that another person will receive can be a good option in many cases, such as when you have children at an advanced age. In addition, if the insured dies, the inheritance can go to a minor child, even if it does not have the legal capacity to manage the money, the insurance company managing the entire process.
This type of product has some advantages over inheritances as we know them, since allow you to transfer money to the heirs safely, knowing that the use of it will not be improper. This helps many people who do not know how to manage a large amount of money that they suddenly receive.
Advantages of an annuity insurance
As we have already seen, Life Annuity Insurance can be very interesting. In addition, it has some advantages over other financial products:
When charging a rent of the same amount periodically Throughout life, this product provides financial stability to the person who collects it.
Life annuities ensure the payment of the agreed amount and the insured does not have the risk of losing the amount invested.
Information always gives peace of mind to those who have it. By previously knowing the amount that is going to be received, the insured and his beneficiaries will be calm.
Capital for beneficiaries
By including beneficiaries it can be established that they will receive all or part of the amount paid as a premium at the beginning of the contracting of the product.
Possibility of hiring for two holders
Sometimes it is possible to contract the same product for two owners, for example, a married couple. When this is so rent is paid as long as one of them lives, even if the other dies.
The annuity is a very flexible product, which can be modified by the insured in many of the conditions, for example, increasing the monthly rent that will be received or the moment in which it will be done.
As we have seen, the life annuity is a product through which an initial premium is contributed to later receive an amount periodically. It is a flexible and safe product that provides peace of mind to the insured and with which the beneficiaries can receive important advantages, in addition to being a good alternative to traditional inheritances.
If you still have doubts about this product and the advantages it can bring, contact with Euroteide Insurance We will be delighted to do so and we will personally advise you on everything you need when hiring your insurance life annuity.