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Kentucky Annuity Insurance: Preparing for Retirement

May 20th, 2013     News

Insurance has a specific coverage time period like when you get healthcare insurance. You can also get yourself Kentucky annuity insurance to cover for the period of your life after retirement. Because of the fact that people are living longer lives today, you might want to take a look at your options to protect your best interests during that time period. With an annuity insurance coverage, you get the benefit of saving money for your retirement days.

Just like with health insurance and life insurance, you have a variety of choices for annuity insurance. Whatever you require, you can get the most suitable Kentucky annuity insurance. You can prepare for a comfortable life in retirement because you’ll have the funds you need to enjoy those days. Speak to your insurance agent to learn more about your options on annuity insurance. Learn about the pros and cons of those choices and pick the most suitable plan for you.

Annuity insurance can be divided into two basic classifications ý fixed and variable.

Fixed Annuity

  • When you get fixed annuity, you’ll have the benefits package that will help you ensure a comfortable retirement. Working on a tax deferred basis, your money is protected and you get back a regular fixed amount on a specified age – usually upon retirement. Clearly, you’ll have the income from your Kentucky annuity insurance to replace part of your paycheck when you retire. Even if you live to 100, you’ll have something to tend for your needs.

Variable Annuity

  • For variable annuity, you’ll also get a benefits package. This might not be the same with the fixed annuity but it’s still a benefit just the same. Here, you won’t have a definite amount of return since your variable annuity is tied with another security. This means that the return of your benefits is greatly influenced by the performance of the economy and where your contribution was put in. Generally, this is a low yielding investment but it has a potential of higher returns when the economy brightens up in the near future. 
  • In case of death of the annuity policy holder during the accumulation period or during the time that contributions are still being made, the heirs of the policy holder will get the amount that the policy holder has contributed so far. In many cases, the amount that the heirs will be receiving will be subject to estate taxes and ordinary income taxes.

Preparing for retirement is something that you should look into now that you’re still fit and healthy to earn money. Check out your options – talk to one of our agents and find out if annuity insurance is something youýre comfortable investing in.