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Annuity Payment Option
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Annuity Payment Option
Either of two ways that one may elect to receive payments from an annuity. One may receive a fixed dollar amount each month, guaranteeing payments but exposing the annuitant to inflation risk. On the other hand, one may decide to receive variable payments, tying payments to the performance of some underlying portfolio. One generally decides which annuity payment option one wishes to receive upon purchasing the annuity.
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They have developed into an attractive insurance product that offers a comfortable middle ground between fixed income predictability and equity portfolio exposure, while still preserving other valuable features, such as death benefits and guaranteed annuity payment options.
Flexibility keys interest in today's indexed annuities: boomers ... by Buckingham, Tom / Life Insurance Selling
In addition to professional management, variable annuities offer tax-deferral on any investment earnings, death benefit protection and a choice of annuity payment options.
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Cash balance plans also provide the same type of annuity payment options that traditional plans offer.
Distribution of retirement income benefits: lump sums have become ... by Blostin, Allan P. / Monthly Labor Review
 
 
 
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