Annuity Quotations for Different Types of Annuities
Annuity Quotations
In order to get the best annuity rates, you have to research the market and obtain several annuity quotations, which will give you an idea of how much income you will receive during your retirement.
The amount of the payments you will receive from your annuity depends on several factors, one of which is the type of annuity you choose, which is why you have to do so carefully, preferably with the help of an annuity adviser.
Here are the most common types of annuities:
Enhanced annuity - If you are suffering from a medical condition, you will get higher annuity quotes, since these conditions tend to lower life expectancy.
Examples include diabetes, lung disease, liver disease and Parkinson’s disease, although there are hundreds of conditions that qualify.
If you have had heart surgery in the past, use a pacemaker, smoke, are severely overweight, or have high blood pressure levels, you can also qualify.
Impaired life annuity – This is basically a more advanced form of the enhanced annuity, covering more severe illnesses like malignant or advanced cancers, Alzheimer’s, AIDs, severe kidney disorders and multiple sclerosis.
Standard annuity – This is also called a fixed annuity or a level annuity, wherein the rate remains the same until the contract expires. This way, you will receive a guaranteed amount, although the risk is that this amount may not be enough when the rate of inflation rises, which is a common trend.
Variable annuity – It is harder to provide annuity quotations for this, since the rate will vary depending on movements in the stock market.
Escalating or increasing annuity – The payments for this type of annuity will also vary from year to year, though it will only increase, the rate of which can either be fixed or depending on the RPI (Retail Prices Index).
Investment-linked annuity – This type of annuity is very risky because its rates are directly affected by the performance of certain investments.
Joint life annuity – If you have a spouse who is younger than you or has no income of his or her own, getting a joint life annuity may be a good choice, but expect lower annuity quotations for this, since you are aiming to provide for two.
Immediate needs annuity – This is particularly recommended for the elderly, who need to pay for medical expenses or the cost of long term care, with the payments going directly to the care providers.
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