Sites that allow you to compare annuity rates are becoming as many as the online car insurance compare sites these days. Now that a lot are into planning well for their retirement, many are also trying to think about investing on an annuity for them to have a stable amount of money in the long run which they can enjoy with their family. One of the types that you can get to see in sites of compare annuity rates would be the fixed types. And these come also in two categories which are the term certain and life annuities. Under the life annuity you would find four major varieties too such as the straight life, guaranteed terms, joint life and substandard health.
Term Certain - this holds a promise to the investor to payout a particular amount to a certain date as agreed. If the investor passes away before this date happens, then the remaining payments would have to proceed to the treasury of the company who has handled the insurance. This is the difference that this type makes compared to the other fixed rates. It does not have any beneficiary, life expectancy or even health condition terms. Even if the investor would suddenly suffer from a terrible illness, all the rates of his payment would stay the same regardless if he has a lot of health bills to pay at the moment. This type of annuity product is not that costly since it requires a few amount of risk that it requires from the investor.
Straight Life - this is considered to be the most basic that you can get to discover when you start to compare annuity rates in terms of the fixed types. This renders a stable flow of income until the death of the investor for the annuity. This is also more affordable than the other life annuities since it also does not have a component of the usual insurance terms. The benefits could not be passed on to the family or relatives once the payee dies. If you are planning to get this type of life annuity, you may want to take a closer look at its consequences first before you decide on it.
Joint Life - this is the life annuity that you might want to consider if you want your payments to be passed on to your spouse if you suddenly face an illness or much worse death. This is the type which will not stop its payment to your other half just in case you face death before an agreed time period. You can also assign other important person for you just in case your spouse dies too. The amount of payments to be given to your beneficiary can be lowered as per your request. These annuities are ideal for those who are married and want the best for their spouses. The tax payment burden is less if you would get it periodically than in lump sum basis.
Guaranteed Term - this is the type of life annuity that has an insurance component. This is a type of annuity rate that can be passed on to other beneficiaries of the investor if he dies before the entire term comes to an end. The payouts will be given to the beneficiary instead of just placing it to the treasury of the insurance company. The payment made here is usually done in lump sums but this needs a much higher premium to have paid. The one drawback that this term has is that you might have to pay a bigger amount of taxes than the usual within a year.
Substandard Health - this is the perfect type of life annuity to have for those who have medical problems in terms of their health. However, this would cost much since the insurance company does not put much interest on the premium that you had to pay. You will also be allowed to have high amount of payouts in the most immediate time frame since your life expectancy is assumed to be less.
Truly, the life annuities differ a lot from each other especially when you would base it on the various insurance components that you might be looking for as an insurance shopper. Just expect that the higher the components of insurance you would add to your annuity, the longer payment term you would have to handle. Hence, it is highly important that you be precise with your prioritized needs so that you can decide easily once you compare annuity rates anytime soon.
About the Author:
David Sean is an insurance analyst that writes on annuity rates and tips for those who are on their way to retirement. He acts as consultant for various retirees from various companies all over US and he shares how the concept to compare annuity rates can help a great deal in finding what is affordable and yet can bring higher income.