St. Andrews Insurance Brokers
©  2001 ST Andrews Insurance Brokers

Tips for Buying Annuities

In case you are approaching your retirement & have any sort of pension fund (for instance, AVC or personal pension plan), then you're likely to have heard of the term annuity. In its regular form, the annuity can offer you a guaranteed life income, irrespective of any alterations in the rate of interest, gilt yields, or stock market changes. Basically, you exchange the pension fund to secure a guaranteed income for your lifetime with an annuity. Although annuities initially started out as a quite straight forward income & investing vehicles, they have transformed into complex items which can be misused & misunderstood in the finance sector. Yet, through a suitable research & due diligence, it is possible for you to use annuities so as to give you a cash stream which you could count-on all through the course of your retirement. Due to shaky pension states & social security, annuities can turn out to be an ideal income vehicle post retirement for you. The annuity rate which you will obtain would be determined by several elements, the major ones being your current age & gilt yields existing at that period. Other elements, for instance, picking a widow's pension, inflation proofing, or escalating income are taken into account as well. It is very difficult to identify that the annuity rates provided by insurance firms can vary considerably, hence, you must be ready to obtain info from a variety of other providers, instead of simply agreeing with the figures provided by your current pension provider. Most individuals make the mistake of agreeing to all the terms and conditions because it appears to be a lot of trouble to research additional options. Furthermore, better rates can be made available for individuals who smoke or have any type of health problems that might reduce their life expectancy; in fact, even the home postal codes can influence the rates that are offered by a few providers. Taking a suitable annuity for yourself can be more than simply a case of finding a suitable rate. It's crucial that you communicate with an independent broker who specializes in retirement income so as to establish the most beneficial way for you to setup your pension income. They can explain you options, for instance, temporary annuities, with profits annuities & other options that you may not be aware of. Purchasing an annuity is no small decision. Ensure that you've a strong reason to make a purchase & stay away from anything which makes you feel like you are under a lot of pressure. Patience along with a wisely executed strategy are keys to creating a successful plan post retirement. The wise advisor will know it might take a few months to progress from your initial contact to being all-set to complete an application. Also, it is wise to consult with an expert in this field to make sure it is a suitable option for you. Important: Know that, as opposed to many other investment choices you might have made till date, an annuity is unlikely to change once you have set it up, hence it is very crucial that you take a suitable advice prior to committing yourself.

St. Andrews Insurance

Brokers

We here at St. Andrews Insurance are here to help you get the best insurance availabel. We specialize in home, auto, life, and renters insurance. We also handle various types of annuities tailored to your income or retirement needs. Give us a call at 512-241-7241, or email us at W.Sales@standrew524.org to see how we can help you.
Insurance Annuities