ANNUITIES
Caplan Financial specializes in crafting annuity strategies tailored to provide clients with a safe, secure, and guaranteed lifetime income, fostering peace of mind. We have an unwavering commitment to what's best for the customer, ensuring each strategy aligns perfectly with their unique financial goals and circumstances. Clients can trust they're receiving personalized guidance geared towards their long-term financial security and well-being.
WHAT IS AN ANNUITY?
An annuity is a written contract typically between you and a life insurance company in which the insurance company makes a series of regularly spaced payments to you in return for a premium or premiums you have paid. An annuity is not life insurance. An annuity helps you accumulate money for future income needs The most appropriate use for income payments from an annuity contract is to fund your retirement. Only an annuity can pay an income that can be guaranteed to last as long as you live.
There are three participants in an annuity contract: the owner, the annuitant, and the beneficiary.
The owner is the purchaser of the annuity, pays the premiums, and has the right to surrender the annuity. The owner is also responsible for any taxes due upon surrender or payout and is usually the person who names the contract’s beneficiary.
The annuitant is the person whose age and life expectancy is going to be used to calculate the benefits of the annuity and who will receive the annuity payments. Usually, the annuitant and the owner are the same person, but it is not required.
The beneficiary receives the death benefit upon the death of the annuitant either in one payment or multiple payments over time.
WHEN ARE BENEFITS PAID?
An annuity may be either immediate or deferred. If you want to begin receiving income immediately, consider an immediate annuity. Immediate annuities, usually purchased with a single premium, provide income payments starting no later than one year after you pay the premium. The reason for buying an immediate annuity is to obtain immediate income for retirement. If you are years away from retirement, consider a deferred annuity.
Deferred annuities provide income payments often starting many years later. Deferred annuities have an accumulation period, which is the time between when you start paying premiums and when income payments start. The main reason for buying a deferred annuity is to accumulate money on a tax-deferred basis, which can then provide an income later.