Variable Annuity Life Insurance - One Retirement Planning Option

By Gordon H. Smith

Variable annuity life insurance is one among many competing life insurance products. There are different types of insurance that are being offered to everyone and this insurance has benefits as well as their disadvantages. But they were originally made and offer not to get money from their clients but to help them.

With our community now it's hard to tell for some of the people who get insurance thinks that insurance companies trick them to buy insurance only to get money from them which is not totally true. There are some insurance companies, who get money from their client but makes sure that their clients and customer are satisfied with their services.

One of these insurance that are being offered to people is variable annuity life insurance. This insurance offers their clients like you an income for a lifetime. And it can help you increase your money through investments in the bonds and stocks.

It provides the insurance holder with big amount of money and a tax-deferred monthly payment plan. This type of insurance is the opposite of life insurance. For in life insurance you are required to pay the insurance company a monthly payment and they give you a large sum when you die.

However this type of insurance is quite the opposite since you will be giving a big amount of money to the insurance company and in return they will give you a specific periodic amount.

Here are some tips for you before you get yourself insurance.

Getting yourself insurance is not as easy as you think. Before you get it you have to understand and know something about insurance. Although they can help you in some way but there are also some insurance which you don't need after all knowledge is power. After all you wouldn't want yourself buying insurance which you won't need.

You also must know what kind of insurance you need. Like when you want to get a variable annuity life insurance before you get it you need to know if you are going to need it. Ask yourself what benefits you'll get out of it and what disadvantage you'll get.

This type of insurance is more like an investment with no assurance for in variable annuity you are free to choose where you want to put your money but there are no assurance in which you could get back your principles when something happens to the place where you chose to put your money.

The advantage you'll likely get out of this type of investment is that when the funds in your annuity increases it value the payment you will be receiving will also increase. Also since it is life insurance it offers you a feature that will benefit your beneficiary when you are dead.

Usually this benefit is the contribution you made in your annuity minus the money you received. While on the other hand the disadvantage is that if you die before the annuity payment is complete then the earnings remaining in your account can forfeited to the company.

Money is not a light matter so before you buy something, make sure to not regret your decision. That is why it is better to know where you're standing and think twice before you make your decision.[source]


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