Recognizing Pension and Annuity Insurance


What’s on your mind when you hear the words of retirement? Perhaps there are still people who think that retirement is a business. People over the age of 50 or 60 years and the time is still very long. But actually because the time is still that, preparation can be done quickly.

each person has their own standards in determining. How much the cost of living in accordance with the lifestyle when retired later. By looking at the lifestyle, then pension planning can be determined. Either by joining the pension plan or investing independently.

After you have determined your desired retirement needs, you need to decide which retirement plan you need to prepare. In connection with this pension fund product there is called an annuity. This is a technical term in the field of insurance that refers to the concept of payment on a regular basis. This is an insurance benefit for the public for the needs of the pension fund being paid. Periodically in accordance with the agreed contract. If paid annually is called annual annuity and if paid each month is called monthly annuity.  Insurance companies distinguish this annuity based on:

The beginning of an annuity benefit

In accordance with the classification of the name. This annuity can be distinguished from its useful life. It’s called an immediate annuity. This is a product in which the insurance company will pay after one annuity period purchased. For example, if the annuity is annual, then the payment of benefits will be paid after one year of product purchased. Then there is the so-called delayed annuity. As the name implies, this annuity benefits after some time from the product purchase period.

How to buy an annuity

As with life insurance, buyers also have to pay a premium with a certain value depending on the period or period of payment of compensation. Premiums paid are paid once or single premium. This is payable once and the benefits will be earned according to the money . The insurance company has managed to pay to the customer at the agreed period. Then there is a fixed periodic premium in which the customer. Pays the same amount of premium with a fixed period of time (monthly or yearly) until the time. The payment of the annuity benefit is scheduled to arrive.

Payment of annuity benefits

These annuity payments are categorized in three ways. First is the fixed annuity, the annuity paid for a certain period of time, whether the customer is alive or dead. Second is the annuity of life that is annuity paid only until the customer dies. Third is a temporary annuity of life is an annuity whose. Benefits are paid until the end of a certain period or when the customer. Goes to the world, depending on which happens first.

In addition, annuity products are also differentiated based on the number. Of parties appointed to receive benefits and also the amount of annuity benefits whether fixed or varied. Regardless of the annuity and product features selected, becomes the right choice for your insurance. hopefully the information we convey is useful to the reader. good luck