Avoid Out Living Your Income, Retire With Peace Of Mine

If you have a large lump of money lying around the house, you'll have no problem funding a single premium annuity. For the majority of people that aren't as fortunate, however, here are some sources you can use for funding:

Sale of a house or property
Sale of investments or mutual funds
Inheritance
Life insurance settlement proceeds
Retirement plan payout

In most cases, the annuity can be funded from any source and portions of payments to the annuitant from an annuity that is non-qualified are not subject to taxes.

Is a Single Premium Annuity Right For You?
If you're searching for a safe, guaranteed income that cannot be outlived, consider investing in a single premium annuity. While annuities have a number of advantages, they also possess a few drawbacks. Investing in an annuity, especially a single premium annuity, is a large responsibility that should not be taken lightly. If you decide to surrender your annuity, you can face severe financial penalties that can greatly alter your future. Before taking the plunge, contact a life insurance agent to help you decide if a this type of annuity is the ideal investment for you. To find a local agent use our quote service to find up to 5 offers from local agents in your area.

If you want the pay out of an annuity without the complications and unpredictability then you might want to consider a single premium annuity. This kind of annuity allows you to make a single premium payment, usually ranging anywhere from $5,000 to $1 million, and then you receive a pay out which usually comes in the form of monthly installments.
You have two options when purchasing these types annuities

Single Premium Immediate Annuity

Your pay out begins one month after you purchase the annuity and continues for the remainder of your lifetime or a predetermined number of years.
This is an attractive option for those interested in turning a tax-qualified rollover, mature CD, or inheritance into income right away.
The income payments are not taxed until you receive them at which point they may not even be completely taxable.
You may be able to accelerate payments but this type of premium annuity cannot be surrendered.

Single Premium Deferred Annuity

This is a tax-deferred annuity that, much like the immediate annuity, requires a lump sum payment to the insurance company.
It is typically used to fund a retirement.
The single premium deferred annuity gains interest over time while also being income tax deferred.
If you decide to withdraw funds before age 59 and a half then you will be hit with a 10 percent penalty.
The insurance company issuing your annuity guarantees to pay out the principal on the maturity date of your single premium annuity as well as any interest that has accrued in that time.

Deciding On A Single Premium Annuity

A single premium annuity is designed to benefit you short term. It is different from a life insurance policy that is designed to benefit your family after you've passed on and is different from other types of annuities that require periodic payments over a long period of time before the pay out occurs. This annuity is specifically formulated for those who don't have much time and want to receive the benefits of their annuity immediately so they can enjoy their retirement. Talk to a licensed financial professional or life insurance agent today about the an annuity and its relevance to you By using our free online quote service.

The easiest way to find the best rate on an annuity is to compare annuity rates, free, using our online form.