Payment Options for Annuity in Washington
Reader’s Question:
Hi. I’m planning on getting annuity and would like to know the payment options there are available for me here in Everett Washington WA and what the provisions and benefits are. Thanks!
Isolde
Everett, WA
Hi there Isolde!
Hope this reply finds you well.
When you first make the annuity purchase, there is a break called a lapse period called the accumulation phase. This is the time beginning from the purchase until such time that you start to receive the income or benefits that you have earned.
It is during this phase that you start contributing money from your earnings, and because annuities are extremely flexible, you can choose from periodic amortizations or lump sum payments. This will depend on you and your capacity to pay.
The benefit you get can depend on the money you contribute (your premium) and the returns or the earnings of the premiums that you have paid. You can get immediate or deferred annuity. Immediate annuity has a shorter accumulation phase and is mostly ideal for people who plan to retire early or need the money within a short span of time.
If you’re sure you won’t be needing what you’re putting in until the future then a deferred annuity can be very beneficial, as it generates a larger income as your premium earns more as time passes. It would be great if you could speak to your local insurer in Everett Washington WA who can inform you an all the requirements that you need and details that you need to know. Hope this has helped you!