We are fortunate to live in a country where we have regular medical breakthroughs. This of course means we are living longer, even with serious chronic conditions. The fear on many minds is, “Will I outlive my money?” Without a plan in place – yes, that is a possibility.
You may have heard of annuities. An Annuity is a contract set up with a financial institution which can provide you with a steady and known income in return for a lump some payment of capital, deposit or premium. Banks offer TERM annuities, which mean they will pay out for a certain time frame, for example, 10 or 20 years. At the end of the set time frame, the contract will expire, and you will no longer receive that income.
A LIFE annuity is a contract set-up with an insurance company to provide an income for the rest of your life. Think of it as your personal pension. A pension will pay you until the day you die. I can’t stress this enough, but not every financial advisor can offer this product. Your financial advisor must be able to sell life insurance products to offer this product to you. There are other special features you can add which will provide you with protection against inflation and return of premium/deposit in the event of an early death. Please speak to your financial advisor on different features available to you.
With the proper plan in place you can now relax and know you will have income for life. Take the time to plan your retirement, your loved ones will thank you.