An Annuity Quote Takes Only a Few Moments and Has a Great Return

Generally an individual investing in an annuity will have one, if not all, of the three following financial goals - they will be looking for a tax-deferred savings plan, they are looking for a guaranteed income after retirement, and some investors would like their families to receive the balance of the annuity, and avoid probate where the annuity investment is concerned.

Any request for an annuity quote should take into consideration some of the following items: will there be a single lump-sum payment or will the annuity be built upon a series of payments? Will the annuity be fixed or variable? What period of time will the income from the annuity be paid? Will payments last for your lifetime, or will they last for the lifetime's of yourself and your spouse?

A fixed annuity is one with a rate of return or interest guaranteed by the insurance company. Under this plan the payments issued on the annuity will also be at a guaranteed dollar amount. The length of the payments will need to be determined when an annuity quote is requested. This investment is not considered a security, and is not regulated by the Securities and Exchange Commission.

A variable annuity allows the investor to select multiple investment tools, such as mutual funds, to try to increase the return rate, or interest earned, on the annuity. The return rate will vary based upon the performance of the investment tools selected. This investment is considered a security, and as such is regulated by the Securities and Exchange Commission.

Is an annuity the right investment tool for you? Let's look at an example: Justin in Nashville decided to begin a retirement investment plan. He visited his insurance agent who generated an annuity quote. They reviewed his financial goals, and it was easy to determine that Justin would be able to live comfortably in his retirement years if he began to invest in an annuity. He then explained that he was hoping to purchase a retirement home in New England. Doing further calculations they determined that if Justin relocated from Nashville, selling his home and purchasing a different, more expensive, home he would be entering into a significantly higher cost of living and his annuity investment would not meet his financial needs.

When searching for a long-term financial investment tool, an annuity quote is a wise decision. Contacting your insurance broker and discussing your options for investment will only cost you a few moments and could really pay off!

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