Why Should You Consider an Annuity for Your Retirement Plan?
Let’s compare an annuity to buying life insurance. If you think about it, these two products are direct opposites. Life insurance protects against the risk of death, or dying too soon. If the insured dies, the insurance company pays out a sum of money to one or more designated beneficiaries. Annuities protect you from living too long. Depending on the type of annuity you purchase, you can ensure that your regular income stream is protected and extended by a number of years which you designate, say 10 or 20 years, or you can ensure that you have income for the rest of your life, whether you live to 80 or 120.
Many people retire and worry that they will outlive their retirement income. Money from savings, pensions, Social Security and other sources such as home equity may or may not comfortably get you there. Betting on stable income for a lifetime is a calculated risk and one that you may not wish to be calculating and worrying about every day. Adding an annuity product, based on age, life expectancy, gender and marital status, can provide needed diversification to your retirement income and ensures that you and your loved one will be protected until the day you die and, in some cases, your loved ones will continue to receive that same comfort and benefit beyond your death.