Pacific Life is one investment company that cares quite a lot about annuities and they have now made it possible for you to visit their website and learn more about them. Annuities for those who may not be aware, have the potential to help you save your property as well as sources of retirement income. Basically, an annuity is said to be a kind of a contract between you and an insurance company. The contract states that you put money into it and in return you are provided with a lifetime income stream.
That is why Pacific Life has gone ahead and taken the initiative to make you understand more about how annuities work and how you can benefit from them. As a matter of fact, Pacific Life is offering several types of annuities and all of them have one striking similarity. This similarity is the fact that all the annuities offered can help people accrue much money for retirement by way of federal tax and a monthly income which is guaranteed to last as long as they live. These two benefits can even be available in one annuity. What Pacific Life is trying to make most individuals understand is that annuities are like a personal retirement strategy, which not only makes your money grow, but also makes it last much longer, when the time to retire comes. The fact that you do not pay taxes on your earnings until you withdraw them or they get distributed to you means that your money will grow at a very fast rate.
Individuals who have never dealt in annuities before ought not to worry, for Pacific Life offers fixed and variable annuities and a chart to which they use to explain precisely the differences between each of them. As an individual, there are various factors one considers before selecting the most appropriate annuity. First, you have to assess and evaluate your risk tolerance, how soon you will need the income, what fees you will pay for the contract and the guarantees that come with the annuity you prefer. Also, you must consider how comfortable you are with market fluctuations, the ability of the company giving you annuities to pay claims and when you need to access to the funds. These things are crucial before you make up your mind and Pacific Life makes sure that all details are clarified and well understood.
Fixed annuities have higher interest rates guaranteed for an initial period of may be 1 to 10 years. When the initial period expires, the insurance company issues a renewal rate that is guaranteed for 1 year. On the other hand, variable annuities are more of long term investment meant to help you grow your retirement savings and earn you retirement income. Usually, the value of your variable annuity contract depends on the performance of the investment, which eliminates any risks. So if you want to earn more money in the long run, but don’t care much about potential loss, then variable annuity is ideal for you.
In an annuity deal with Pacific Life, the insurance company, the beneficiary, the owner and the annuitant are all involved. This means that all details of the annuity are discussed, any queries addressed and the ability of the insurance company to pay claims is also analyzed.