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Immediate Annuity

Make sure you have the right retirement plan for your peace of mind

North Carolina Annuity

What Is An Immediate Annuity

An immediate annuity begins paying out income to the annuitant shortly after the initial investment is made. Unlike deferred annuities, which have an accumulation phase where the funds grow before payouts begin, immediate annuities provide an immediate stream of income.

The annuitant typically makes a lump-sum payment to the insurance company, and in return, receives regular payments for a specified period or for life. Immediate annuities are commonly used by retirees looking for a steady and predictable source of income to cover living expenses during retirement. They offer the advantage of immediate income without the need to wait for an accumulation period to pass.

The benefits of an Immediate Annuity

  • Immediate Income: The annuity begins paying out income to the annuitant shortly after the initial investment is made, providing immediate financial support.
  • Predictable Cash Flow: These annuities offer a predictable stream of income, providing stability and peace of mind for the annuitant’s financial planning.
  • No Accumulation Period: Unlike deferred annuities, there is no accumulation phase with this annuity. Payments start immediately, eliminating the need to wait for funds to grow.
  • Retirement Income: These annuities are commonly used for retirement planning, ensuring a steady income stream during retirement years when other sources of income might be limited.
  • Lifetime Income Options: Some immediate annuities offer the option for lifetime income, guaranteeing payments for as long as the annuitant lives, providing longevity protection.
  • No Market Risk: The income payments from these annuities are not affected by market fluctuations, providing stability and protection from market downturns.
  • Simplicity: This is a straightforward financial product, making it easy to understand and manage, especially for individuals who prefer simplicity in their financial planning.
  • Customizable Payout Options: This type of annuity often offer various payout options, allowing annuitants to tailor the payments to their specific needs, whether they require a lump sum, periodic payments, or a combination of both.
  • Guaranteed Income: It provides a guaranteed income stream, offering security and assurance that payments will continue according to the terms of the contract.
  • Inflation Protection: Some immediate annuities offer inflation-adjusted payments or options to add inflation protection riders, helping to maintain the purchasing power of income payments over time.

We are always here to help with your planning and questions…
Talk to one of our annuity consultants today at 336-346-1440 or contact us here.

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