Annuities are basically a certain type of income for retirement of individuals who would like to earn a steady income for the remainder of their life.
There are often various kinds of annuities such as level annuities, joint life annuities and enhanced annuities and the income for all of them can be structured in several different ways. Every insurance company usually offers a couple of different options for income and the type of annuity that you possess has a lot to do with it as well. Listed below are some different kinds of annuity income options that might be available for you as well.
The very first option provided is called the single life annuity. The annuitant receives a monthly income for as long as they may live. The payments will stop when the annuity holder dies.
The second type of annuity option is known as the joint life annuity where the monthly income is based solely on the expected life of two people. The first dependant on the joint life annuity is the person that holds the annuity and the beneficiary is usually the spouse. The good thing about a joint life annuity is that if the annuitant dies, the beneficiary continues to receive an income until his or her death.
Another type of an annuity is called a fixed term annuity, the annuitant receives payments for a specified term between 3 to 5 years. If the annuitant is to die before that time, then the beneficiary will receive the same payment for the specified period of time.
These are just some of the many different kinds of income options for annuities, make sure that you are totally aware of your situation and know exactly what you are getting yourself into with regard to the terms and conditions before you sign the dotted line.
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