Annuity Payments New Jersey NJ
Reader’s Question:
I am 40 years old and planning for my retirement now here in New Jersey. I plan to retire at 60. I am particularly interested in annuities. Are there different types of annuity products?
Sherman
Trenton, NJ
Hi, Sherman. Forty is just the right time to think about your retirement as you still have enough time to save up in case you want to buy an annuity. I take it that you have an idea about annuities. However, just to reiterate: Annuities are just like whole life insurance but with a slight difference; an annuity policy pays you a monthly guaranteed income as long as you live while a whole life insurance pays claims made by your beneficiary when you die. For example, you lived up to 90 years old. This would mean that from the moment you celebrated your 60th birthday up to being 90 years old, you have received a monthly income for 30 years.
You can choose to buy an annuity via a single payment premium. With this, you pay a lump sum, then start receiving money after a year so. Another kind of annuity is what we call a combination of retirement savings and retirement payment plan. This type of annuity allows the annuitant to make regular payments or contributions to the annuity for a certain date and then receive regular payouts from the annuity from then on. And lastly, there is a type of annuity that has life insurance mixed into it. In case the annuitant dies before annuity payments begin, a designated beneficiary will receive a lump sum or the regular annuity payments. So, I hope you give your agent in New Jersey a call soon.
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