Fixed and Variable Annuities

Annuity is a kind of financial investment in which the investors get tax relief on investment income until withdrawal. There are various types of annuities and you can get the money in periodic payments or in lump sum. Annuities can be paid weekly, monthly, quarterly, yearly, or at any other fixed interval. They are mainly sold by insurance companies and there are various types of annuities. Annuities can be broadly categorized under two heads:

Fixed Annuities: In fixed annuities like government bonds the investor is guaranteed to pre-determined interest rate on his earnings for a particular period of time. A fixed annuity is one in which the investor pays a sum of money to an insurance company and the company agrees pay you a fixed monthly amount for a certain period of time. Fixed annuities are further divided into two categories single premium immediate annuity (SPIA) and single premium deferred annuity (SPDA). In case of SPIA the payments are made to the investor from the first month of investment whereas in case of SPDA the payments are done from the date specified by the investor. The payment made in case of fixed annuities contains a ratio of the principal amount and the interest amount and are paid out for a fixed period of time.

Variable Annuities: Variable annuities are investments made in stocks, bonds, and money market and the return on these vary depending on the market trends. Variable annuities are a mix of insurance contract and an investment product. The rate of return paid in case of variable annuities is significantly higher than the fixed annuities. Variable annuities are a perfect investment option for people who want monthly retirement benefits.

The only disadvantage of annuities is that your money gets locked and it can be a big problem when a person needs instant cash urgently. At Sovereign Funding Group, we provide cash for annuity payment and meet your financial needs. You can either sell a portion of your annuity payment or all of it depending upon your need and we will provide you with a lump-sum cash amount. We deal in both fixed annuities and variable annuities and our professionals will guide you through the entire process of selling annuity. You can call us at toll-free at (877) 836-4661 for free consultation or email at Info@sovereignfunding.com.