Annuities are excellent retirement tools because they allow you to delay paying taxes on the money you don’t spend. Moreover, annuities guarantee an income you won’t outlive.
What Is a Flexible Premium Deferred Annuity (FPDA)?
Insurance firms sell contracts with variable premium payments and payment amounts. For two or more individuals, premium payments can be made monthly, quarterly, semi-annually, or yearly throughout the policy holder’s life. It might also be for a set amount of time.
Flexible premium deferred annuities accept monthly installments of as little as $50. Each deposit has a one-year interest rate guarantee term. After the guarantee period, the depositor can benefit from attractive renewal rates depending on current market circumstances.
The Benefits of a Flexible Premium Deferred Annuity (FPDA)
• One of the primary benefits is that each contract includes a principal guarantee, ensuring that a customer doesn’t receive less than the complete premium payment due.
• Each contract includes a 9-year surrender charge period, and there are several options for the customer to retrieve cash before the surrender charge period expires. The customer benefits significantly since the surrender price is waived. There’s no specified time limit at the conclusion of the surrender charge term in which the customer must decide whether to renew the surrender charge or discontinue the annuity.
• A flexible premium deferred annuity is an excellent savings vehicle for anybody seeking flexibility in maintaining premium contributions and tax-deferred financial gain. It’s an excellent way to supplement retirement savings programs, which may be used to finance IRAs, SEPs, and other plans.
• A significant advantage of this system is that the client will never get less than the complete premium payment due (minus any loans or withdrawals), regardless of economic swings. This annuity includes a principle guarantee that other investment products don’t provide.
• There will be no surrender charge for clients who want to take early retirement after holding the annuity for five years and reaching the age of 59.5 years at the time of surrender.
• A flexible premium deferred annuity is a reliable savings choice for consumers who don’t want to risk losing some or all of their money.
• Annuities are one of the best ways to create a regular source of income for yourself after retirement when the dread of running out of money begins to plague you.
• Annuities allow your assets to grow tax-free, which is one of the most significant benefits for people in their retirement years.
• Since there are no investment limits, anybody can contribute any amount to the flexible premium deferred annuity plan.
Contact Information:
Email: [email protected]
Phone: 4022508277
Bio:
Carl Wyllie is an advisor focused in areas of Medicare, retirement, estate planning, and crisis planning. Carl works with individuals of all ages in planning for their retirement. He is uniquely effective in building working relationships between their families and elder care law attorneys to assist them in avoiding a healthcare crisis. Carl is particularly sensitive to helping provide the means for his clients to maintain their independence and dignity when a change in their health occurs due to the natural aging process.
