Recently, annuity insurance plans have boomed up as the new favorite investment option among the investors. Let’s try to understand how the scenario has changed in last few years and why should you consider buying an annuity plan.
You might be shocked, but this is true. According to the IRI Fact Book released in 2014, the life expectancy of seniors in America has significantly increased. In the decade of 1980, the average life expectancy of a 65-year-old person was approx. 79 percent while the same has increased up to 83 percent recently. This means seniors in America are going to live for longer and if you too are an American retiree or approaching your retirement; you are supposed to look for a reliable source of income to spend the later years of your life.
This increase of four years may seem small on papers, but this can significantly affect one’s future savings and retirement planning. If you haven’t planned anything for your retirement life yet, you are suggested to look for one. And annuities can be an appropriate solution of the same. By buying an annuity plan and paying the premiums every month, you can ensure a fixed monthly income in your retirement life. You can also choose whether you want to pay the premiums every month, quarter or annually. You can buy multiple annuity insurance quotes through the insurance portals and compare them to decide a suitable plan for your specific requirements.
By following the trend of sales in last few years, it’s visible that people are increasingly showing their interest in buying a retirement annuity plan for themselves. In 2013, totals sales for annuities touched the number as high as $220 billion. Among those $200 billion, deferred annuities had a share of $209 billion while immediate annuities had a contribution of $11 billion. Among those annuities as well, there further are two types: fixed annuities and variable annuities. Variable annuities hit the number of $148 billion while the fixed one accounted $78 billion. Hence, you are suggested to check these insurance plans once, whenever you go for an annuity plan.
There are millions of investors out there who are investing their money in different financial institutions. They put their money into the stock market, bonds, mutual funds, social security, annuities and various other institutions. But since lately, investing in annuities have become a trend and investors are taking more interest in that. This can be realized from the fact that annuities were nowhere near being a preferred investment option and now more than one-third of the investors have put their money into annuities. In variable annuities, the ratio of male and female investor is almost equal (i.e. 51 percent and 49 percent) while for indexed annuities, the same goes for 58 percent and 42 percent respectively.
With each year passing, the scenario is changing in the financial market and people are changing their opinion about annuities. More and more people are taking interest in learning what annuities are made for and what all the benefits they bring with them. People are frequently talking about annuities in their neighborhood and looking forward to trying their hand at which is a good sign for both the insurance providers and the investors.
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