Annuity types Pennsylvania PA

Reader’s Question:

Are there many types of annuities? What are the significant differences of each type? I need annuity and I am currently shopping from local providers in Pennsylvania. I appreciate if you could help me.

Erie, PA

Certainly, Erie.
I am more than happy to assist you on your annuity concern. Annuities usually can of several types, relative to the classification of the provider. These are categorized according to rate of return, payout, annuity period, annuity tax status, and mode of payment.

For the rate of return, an annuity return can either be fixed or variable depending on the assessment of the annuity holder.
When it comes to payout your annuity can either be immediate or deferred. For immediate annuity, payment starts as soon as the annuity plan is purchased. For deferred annuity, payment will start at a later date as pre-agreed for both the annuity holder and the provider.

For annuity period, this can either be fixed or lifetime. If it is a fixed period annuity, payment will be made within the period of a pre-applied number of years, say ten years. On the other hand, if it is a lifetime annuity, your payment will be made throughout the remaining life of your annuity.

When it comes to your annuity tax status, your annuity investment plan can either be a qualified or non-qualified annuity. Money that you pay for a qualified annuity will not be taxable for the year wherein your annuity was paid. With a non-qualified annuity, it will be taxable.

Lastly, with your mode of payment, you can choose either a single premium or flexible premium annuity. If it is a single premium annuity, a single payment made funds the annuity while if it is a series of payments, it will serve as a collective fund for the flexible premium annuity.

For more specific details on these features, you can contact your local annuity agent in Pennsylvania and never hesitate to ask any question that comes in your mind regarding annuity.