Article provided by: WePayMore Funding LLC
Settlement options for annuities
Before discussing much on this topic, it’s important first to understand what annuity settlement means and what it entails. Annuity settlement is an agreement in which a company or business entity pays a particular amount of money to an individual for a specific period. There are vital documents that are involved in the whole settlement process, and they include annuity application, an assignment, an annuity policy, and the agreement. The payments are usually made in the form of installments for a specific period agreed between the two parties.
So, in case you select a specific annuity settlement option, then you should know that the payments are tax-free unless another tax policy is passed in future. Always make sure you choose the best annuity settlement option for you. Take your time to analyze the available options so that to avoid regrets after signing the agreement. Make sure you involve experts in the whole process such as hiring our best financial experts to help you make an informed decision. There are four main annuity settlement options that you need to consider before the process of payment begins and make sure you understand how all of them work.
The settlement options include Straight Life, Straight Life Option with Certain Period, Straight Life Option with Refund and Joint and last survivor. The annuities are usually very complicated sometimes, and therefore you need our experienced financial experts to help you get what is right for you. These annuities can allow various financial facilities to the investor. However, you can check below we have explained the major annuity payment options available on the market currently;
This settlement option enables you to enjoy various financial facilities such as lifetime income. Additionally, you can still enjoy significant payments associated with different payment options. You can also obtain a particular payment in your entire life with the help of annuity settlements.
Straight Life with Certain Period
In this option, if you are the annuitant, you will agree with the provider to repay you for a specific period that both of you are comfortable with. Here, you can also make payments throughout your life with the help of annuity payments. Actually, the option only provides security to the annuitant. The only problem you will experience when you choose this settlement option is that it’s associated with the annuity settlement which offers low periodic payments.
Refund Straight Life
Choosing this option means that the repayment benefits are dependent on the amount and the current buying price of the annuity. Therefore, you may either get good cash or less amount depending on how the annuity market is performing.
Joint and last survivor
This option means that the joint payments are provided to any two persons you choose such as couples. If any one party passes away, then the other survivor will continue receiving the payments and other benefits. Here make sure you include your loved ones, so that even if you no more your family will still lead a good life.
In case, you have entered into the annuity agreement and you need the whole lump sum amount immediately, you don’t have to worry anymore. Just give us a call and we will purchase the annuity and give you cash to enable you to plan on your financial life.
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