Annuities are an option that many Americans like to use to diversify their retirement portfolio and add another tax advantaged income stream to their retirement.
Plan options vary by state, and it’s important that you work with a professional to find the plan that is right for you. Many Annuities get a bad rap for charging high fees and not paying what is left on the principal to a beneficiary upon the death of the annuitant.
There have been many changes to the industrywith Annuities that provide favorable coverage if the annuitant passes before the principal cash amount has been paid out.
There are also many annuity plans that double as long term care plans in the event the annuitant is not able to perfomr at least 2 of the 6 activities of daily living. The idea behind an annuity is simple: Provide lifetime monthly or yearly income to the annuitant with an interest rate that is above inflation and the interest grows tax free.
Within these annuity plans are many intracies and hidden costs that insureds need to aware of. Here at Westfall Insurance, we would be more than happy to help assist you with any Annuity Questions you may have!