Understanding Equity Indexed Annuity Payout Options

Equity indexed annuities can be a solid investment when you are trying to plan for your retirement. If you choose to invest in this type of plan, you need to understand what payout options you might have.

Guaranteed Period

With most equity indexed annuities, you will have the option to take a payout over a specific amount of time. While the payment that fluctuate depending on the performance of the financial index that it is linked to, they can guarantee a payment for a certain amount of time. For example, you might choose to receive payments every month for the next 30 years.

Lifetime Payments

You can also choose lifetime payments if you want. If you utilize a single annuity, the payment is going to be based on the life expectancy table of your sex. If you are utilizing a joint annuity payment with you and your spouse, they are going to continue paying until both you and your spouse pass away. With this method, you are going to get a smaller payment because they know they will have to be paying longer.

Life with Guarantee Period

You might choose a life with guarantee period annuity also. This provides you with a payment for your life and if you die, they will keep paying your beneficiaries for a certain amount of time.