Have you been looking at annuity as an investment? In case you are not sure what this entails, annuity is one of the investment options which are sold primarily by insurance companies. You have the option of choosing deferred or immediate payout or maybe variable or fixed returns if you are looking at New York Life annuities. Continue reading to learn more about this type of investment.
Annuities are basically a contractual agreement between a buyer and an insurance company. When you have an annuity investment, you can expect a rate of returns that is guaranteed as well as benefit from tax deferred growth. The key is to buy an annuity policy with a settlement for life insurance. You can keep this purchase at no less than one third of your overall assets.
Some Reasons Why You Should Consider New York Life Annuities
1. With an annuity policy, you will be able to make payments in succession at fixed intervals and these might be guaranteed for your lifetime or a definite number of years. The money that you will receive as payment will include interest and principal. Keep in mind that annuity is not like an insurance policy.
2. Once you compare the different New York Life annuities rates, it will be easier to decide on what to purchase. For fixed annuity, your money is going to accrue interest at the minimum rate and most variable annuities which are invested as securities can potentially earn you higher interest.
3. When it comes to the fixed plans for New York Life annuities, you will find a number of them to choose from. These include the:
- Preferred Annuity
- Enhanced Annuity
- Optimal Annuity
- Select 5 Annuity
- Flexible Premium Annuity
About New York Life Variable Annuities
These annuities can be described as long-term investment options that you can use if you are saving for retirement. For a variable annuity, you will have a contract agreement with an insurance provider to make payments and receive earnings at a later date. With this investment, you will not pay taxes from your earnings unless it’s withdrawn from the policy.
Basically, variable New York Life insurance annuities will be designed for persons who want a high risk retirement plan that can yield higher returns. Funds are paid in bonds and equities from a number of sub-accounts. Note that although you will be able to capitalize on upturns in the market, you could suffer loss if the market is experiencing a downturn.
When you are ready to invest in New York Life annuities, you should really take some time to compare the quotes with other insurance plans from some of the top companies. By doing this, it will be easier for you to decide on the best investment plan for your requirements.