Add Up Articles Directory | Free Articles | New Articles Daily | Some of the benefits of setting up an annuity account

With so much instability in the economy, it can be difficult to decide how to use your capital. This particularly true as member of the public are frightened that if they go ahead and invest they could gain little in terms of an attractive return.

Nevertheless, an annuity is a worthwhile alternative to playing the stock market or making a business investment. In reality, an annuity may offer huge benefits to people mulling over an investment strategy.

So for some of the benefits of an annuity; scan through the items listed below, written using information on www.InvestmentSense.co.uk.

If you have health risks or certain lifestyle choices have reduced your life expectancy then you can look at an extra or an impaired life insurance fund. This type of annuity is appropriate if lifestyle factors, such as drinking and smoking, could result in you having a shorter life span when judged against the majority of the population. Some of the other medical conditions that may make you eligible for this particular annuity include obesity and different forms of health issues. Accordingly, if there is a fear that you will not live beyond 75 years then you could well find it reassuring to know you can claim some of the annuity.

An annuity is available with a range of choices, making the perfect for a range of personal circumstances. For example, you might want to take out a single-life or joint-life annuity. A single-life annuity supplies you with an income for the rest of your life and ceases on your death; whereas a joint-life annuity will carry on paying your spouse after you have passed on. There is even choice as to how much is paid out; as you may want half or even two thirds of the original income to be paid to your spouse. You can even request inflation proof annuity.

One of the key benefits of a retirement annuity is that it allows you to have the consistent security of a fixed income, which you will get instead of your pension. This can give you the peace of mind of knowing exactly how much money you will have at your disposal; you will then be in a much more suitable position to budget. Thanks to this, having an annuity is similar to having a fixed wage; meaning that you will have the stability and consistency that you are used to.

The advantage of an annuity is that you may find a really good deal due to the suppliers' competitive nature. If this takes your fancy then it is good to do some research for your annuity and work out which offers and benefits are ideal for you. First you want to discuss with your pension advisor, look at the options you may have analyse the market. Generally for your research you may want to speak with different firms or utilise an online service to list rates and best deals. You may like the annuity rates listed on www.InvestmentSense.co.uk could be the ideal place to look.

If you do take out an annuity then in the event of your death before you reach the appropriate age your loved ones can still benefit thanks to annuity protection. With this option, a spouse or family member can receive a lump sum upon your death. However, these finances would be subject to tax; it does mean that your money will not be lost and that your family and loved ones will receive some form of financial support. This feature means that an annuity can really help your loved ones to pay for your funeral and can make the whole ordeal less stressful.

The items listed above should give you a solid understanding of the advantages of setting up an annuity and should get you on your way to making a positive choice.