There are many different types of annuities. Each one has their advantages. Our customers genuinely know Due as a fixed annuity program as we payout monthly, but many people can fit their type of annuity into our program. Deferred Annuity – A deferred annuity is a form of annuity that Due offers. This is for people like me and you what want to build up a nest egg annuity before we retire. We defer our payments until a future date. In most cases when you retire at 65. Deferred annuities are very popular for people looking to have guaranteed income in the future. Some people prefer to defer these payments until they stop working which could be long into their 70’s. It’s really up to you!Fixed Annuity – Fixed annuities are fixed interest investments issued by insurance companies like Due. These types of annuities pay guaranteed rates of interest. We find these genuinely are higher than bank CDs. In most cases you can defer income to a later date (in our case at your retirement age) or draw income immediately (if you’re wanting to get money right now. We offer both options for fixed annuities. Our customers love the guaranteed fixed investment to help them predict their retirement.
Immediate Annuity – An immediate payment annuity is very similar to a life insurance policy. Instead of waiting years, you can deposit a large sum of money in exchange for regular income each month. This is typically invested for 12+ months before you start receiving the monthly annuity payout. You have to be comfortable sacrificing a large sum of money in your bank account for monthly money deposited into your account.
Variable Annuity – These types of annuities are typically put into subaccounts (mutual funds). How much money the annuity is worth depends on how well the total value of the mutual fund performs over the period of time divided up all the among the accounts. If they perform bad, they will not pay out that well. Variable annuities are popular among retirees that want a little bit more than the average fixed annuity will return.
Fixed Indexed Annuity – A fixed indexed annuity is genuinely a rate that is attached to a specific fund or something like the S&P overall performance. Fixed indexed annuities typically offer a guaranteed minimum income benefit with a small chance of an increase if the fund invested in performs above average. A huge drawback to these types of annuities is that they typically perform a little off the market and don’t gain like you would if you invested in a more risky type of annuity.