How Can Annuity Plans Help You Achieve Financial Goals?
Updated On Jun 15, 2022
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Long-term, short-term, and intermediate financial goals are all part of comprehensive financial planning. Financial objectives that are in sync with a person's ideas and interests are the best. Financial goals are defined as measurable milestones that, when met, help a person get closer to their ideal future. They should not, however, be confused with a budget or a financial plan. A person with a high level of financial competence is required to set good financial objectives. It is critical to understand money principles such as how a budget works, how taxes operate, the distinctions between different types of investments, and other personal finance topics that influence an individual's personal finances. Continue reading to learn more about how important a person's financial objectives are.
What Are the Different Annuity Plans That Are Available?
The Indian insurance industry has a number of possibilities if you're looking for an annuity plan for your parents. At the most basic level, you can pick between instant and deferred annuity options. Immediate annuities pay paid straight now, whereas delayed annuities payout at a later period.
What Is the Duration of Annuity Payments?
Annuity policies provide benefits for the rest of the annuitant's life. You must examine a lot of things while choosing an annuity plan for your parents. Examine any additional sources of income they may have. Consider how long such revenue sources will continue to provide their fundamental requirements. This will assist you to figure out how much annuity they'll need during their lifetime.
Will Both Parents Be Covered By The Annuity Plan?
It's reasonable that you want to ensure the future of your parents. On the market, there are annuity programs that can assist you with this. An option for a shared life annuity. If the annuitant dies, the spouse will continue to receive annuity payments for the rest of their lives.
Is The Premium That I Paid Going To Be Refunded?
There are annuities that offer a return of purchase money option. Annuitants in these plans get income for the rest of their lives, and the purchase price is reimbursed to the nominee when the annuitant dies. You can also choose annuity options that incorporate both a shared life option and a purchase price return. If the annuitant dies, the spouse receives the annuity payments for the remainder of their lives. The nominee is reimbursed for the purchase price if the spouse passes away.
Take Away
The ultimate aim of comprehensive retirement planning is to be able to comfortably satisfy all financial goals after retirement, not to earn a high rate of return on investments. It's critical to have a consistent source of income in order to pay for basic monthly needs and avoid being financially reliant on others. When discussing annuity coverage with your parents, like with any financial issue, preparation is essential. Consider their retirement goals, create a brief budget, and estimate their total requirements. This should give you a fair sense of the amount of annuity you should purchase.
Also read: What Are Pension Plans And What Are Their Advantages?
