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An annuity is a contract between you and an insurance company that requires the insurer to make payments to you, either immediately or in the future. You get a fixed amount of money for the rest of your life in return for a lump sum payment or a series of instalments. COMP/DOC/Nov/2022/2811/1623.
An annuity is a contract between you and an insurance company in which you make a lump-sum payment or series of payments and, in return, receive regular disbursements, beginning either immediately or at some point in the future.
For instance, a $100,000 annuity purchased at age 65 with immediate payments might yield about $614 monthly. If the annuity has a 5% interest rate over 10 years, the monthly payment could be approximately $1,055.. At age 70, the same annuity might pay around $613 monthly for life.
Some annuities do indeed offer a 7% rate guarantee. But theres a catch. That doesnt guarantee the annuitys actual return. Instead, it guarantees the growth of an income account value created by an optional rider. Its not money you can withdraw.
A common example of an annuity due payment is rent paid at the beginning of each month. An example of an ordinary annuity includes loans, such as mortgages.
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In addition to life expectancy influences your monthly payment will also depend upon the insurance companys expected investment returns on your money. If the insurer can expect to receive a 7 percent return on its $50,000, the monthly payout would rise to $449.96.
For instance, a $100,000 annuity purchased at age 65 with immediate payments might yield about $614 monthly. If the annuity has a 5% interest rate over 10 years, the monthly payment could be approximately $1,055.. At age 70, the same annuity might pay around $613 monthly for life.
In addition to life expectancy influences your monthly payment will also depend upon the insurance companys expected investment returns on your money. If the insurer can expect to receive a 7 percent return on its $50,000, the monthly payout would rise to $449.96.

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