When you buy an annuity, you pay a certain amount of money called an insurance premium. This premium can be paid all at once in the beginning (called a single premium annuity), or it can be paid in installments (a flexible premium annuity). When an insurance company receives the premium from you, the premium is gathered and collected, or pooled, with the premium paid by all of the other people that buy annuities from the insurance company.
Posts Tagged ‘Life annuity’
Annuities: How Does A Single Premium Immediate Annuity Work?
June 3rd, 2010 by Your Insurance Advisor
more...Annuities: What is A Single Premium Immediate Annuity?
May 24th, 2010 by Your Insurance Advisor
A Single Premium Immediate Annuity (SPIA), out of all of the annuities that we have talked about, is the one that is most insurance-like of all annuities. As we discussed before an annuity protects you from running out of income, or money, before you die. When you buy a single premium immediate annuity you are protecting yourself by assuring yourself a source of income for the rest of your life.
Annuities: What is an Annuity?
May 17th, 2010 by Your Insurance Advisor
An annuity is an insurance product that helps consumers protect themselves against living too long. In effect, it works as the opposite of a life insurance policy which protects you from living too little. An annuity guarantees the annuity owner a fixed amount of income for as long as they live.
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