Insurance

If you want to ensure that your retirement years are comfortable and financially secure, you should look into getting a deferred annuity. With a deferred annuity, you can rely on having a stable stream of income that you can use for addressing your needs.

What is a deferred annuity? It is simply a type of annuity plan where you pay premiums for a set period of time. When that time period is over, you can then withdraw money from your investment. While your annuity is still in its so-called growth stage where all you are doing with it is to pay your premiums, it will not be taxed. Taxation happens only when you start withdrawing money. This means your investment can grow significantly on its interest rate before you start using it.

A Fixed Income You Can Rely On

When you get a deferred annuity, you literally are building your nest for your retirement. As we all know, the retirement years can be an uncertain time. It is not only because we have grown older, but it is also because it is a time when we are supposed to leave our spot in the workforce and our opportunities for earning income would be more limited. Add to that the fact that the wearing and tearing that our body has experienced throughout the years will start manifesting, thus making additional medical care a necessity for us.

By having a source of income like a deferred annuity, it guarantees that we will remain financially independent even as we enter our golden years. We do not have to rely on our children or on anyone else to support us. We can continue living the way we want to, in the lifestyle we are accustomed to.

Choosing an Insurance Company

Because our future depends on it, we have to be absolutely sure that the insurance company from which we will buy our annuity is truly stable and will solidly stand by us through the remaining years of our life. If we put our trust in the wrong insurance company, we run the risk of losing everything and it will be quite difficult to rebuild our life savings when it happens.

Before you buy your annuity, always check the rating of the insurance company that will provide it. Make sure that its ratings with agencies like AM Best and Moody's are very high. It does not matter that the rates of the annuities they offer are a bit lower than those given by lower-rated companies. With these highly rated companies, you can at least sleep easily at night, knowing that your money is safe.

A deferred annuity is something that we need to avail of before we reach our retirement age. It can spell the difference between comfort and destitution when we enter our golden years and become too old and frail to work.