InsuranceAgents.com’s Rafael Onak, describes how to avoid living longer than your income in “Single Premium Annuity: Secure Your Financial Future.” Annuities are insurance products that help to guarantee you will receive income for the rest of your life. While some annuity purchasers pay small amounts over time to reach the specified purchase price, others prefer to make a lump sum payment which is called a single premium annuity. The minimum investment required is usually anywhere from $5,000-$10,000, depending on the insurance company from which the annuity is purchased. If you choose to defer receiving your monthly payments, the annuity can earn interest for you which will be paid out along with your initial investment.
There are many ways to find the money for purchasing a single premium annuity. Funds from the sale of a house or other property, the sale of investments or 401k annuities, an inheritance, a life insurance payout, or other retirement plan payouts are all good ways to obtain the funds for purchasing an annuity. A single premium annuity is best for those looking for a safe way to obtain guaranteed income for life. You want to purchase an annuity with the plan that you will not take the money out prematurely because there are strict penalties associated with that. Speaking to an expert is the best way to determine if an annuity is right for you.