To gain an understanding of annuities, we need to start at the beginning. In the year 1740, the Presbyterian Church began to use annuities in order to aid widows and the priestly order. The simple purpose of an annuity is to ensure that you have a sound financial back up during retirement. Today, there are different kinds of products sold by Insurance companies and agents. Before you take out an annuity ensure that the Insurance Company has a license to practice in your state. The State Insurance Commission is a legal body that regulates Insurance companies to make sure they have adequate funds so that investments are not jeopardized.
Different companies have annuities with different rates and returns. There could be several reasons why you would want an annuity. For example, an annuity helps you pay reduced tax, avoid probate and save for the future. You can look out for your future and that of your heirs. By putting money away for an inheritance, you are making a wise decision for your family. When choosing an annuity quote it is important to remember your financial status and goal for the future. Annuity quotes differ according to the annuity you choose. There are several companies that offer quotes for Immediate Annuities, Fixed Annuities, Equity-indexed Annuities and Variable Annuities.
If you choose an Immediate Annuity, then you can expect to receive a fixed or variable sum of money every month or quarter or according to your specification. The amount of money you receive is based on your initial deposit and the time duration of your annuity. If you choose a variable plan then make sure that your investments do very well. A Fixed Annuity is a low risk annuity because you receive a minimum interest whether or not your investments do well. These are more stable in nature and you will always know what to expect. There is no gamble in investing in such an annuity. Some companies that offer this are National Western Life, Jefferson Pilot Life, Great American Life Insurance Company, Allianz Life, American National Insurance Company etc.
Equity Indexed Annuities, as the name suggests is based on the stock market index. If your chosen index rises then you gain and vice versa. There is a certain amount of risk in this product; however, the bright side is that you gain if your investments do well. Variable annuities give you the freedom to decide where you want to invest, but it also does not protect you in case of loss. The benefit is that you get to keep all the profit. These annuities are good for those who are completely aware of the market dynamics. Therefore, before choosing an annuity quote you must first know what kind of annuity you really require. There are several online insurance portals that offer to give you an annuity quote instantly. All you have to do is fill out an online form and your quote will find its way to you.
In conclusion, choose an annuity quote that comes from the right source. Ensure that your agent is licensed, knowledgeable, reputable and experienced. It is always best to go for an agent that comes as a recommended source. Further, you can opt to receive multiple annuity quotes so you have a choice in front of you.
About the Author: Robert co-founded Insurance4USA.com, an insurance quote shopping service, in 1999. He has been a licensed insurance agent in New York State since 1990.