Whole Life Annuity
Search Dictionary
Definition of 'Whole Life Annuity'
A whole life annuity is a contract between an insurance company and an individual. In exchange for regular payments, the insurance company agrees to pay the annuitant a fixed amount of money for the rest of their life.
There are two main types of whole life annuities:
* **Fixed annuities** pay a fixed amount of money each month, regardless of how long the annuitant lives.
* **Variable annuities** pay a variable amount of money each month, based on the performance of an underlying investment portfolio.
Whole life annuities can be a good option for retirees who want a guaranteed source of income for the rest of their lives. However, it is important to understand the fees and expenses associated with whole life annuities before you purchase one.
Here are some of the pros and cons of whole life annuities:
**Pros:**
* Guaranteed income for life
* Tax-deferred growth
* Potential for tax-free withdrawals
* Protection from inflation
**Cons:**
* High fees and expenses
* Potential for loss of principal
* Complex contracts
* Limited investment options
Before you decide whether a whole life annuity is right for you, it is important to speak with a financial advisor.
There are two main types of whole life annuities:
* **Fixed annuities** pay a fixed amount of money each month, regardless of how long the annuitant lives.
* **Variable annuities** pay a variable amount of money each month, based on the performance of an underlying investment portfolio.
Whole life annuities can be a good option for retirees who want a guaranteed source of income for the rest of their lives. However, it is important to understand the fees and expenses associated with whole life annuities before you purchase one.
Here are some of the pros and cons of whole life annuities:
**Pros:**
* Guaranteed income for life
* Tax-deferred growth
* Potential for tax-free withdrawals
* Protection from inflation
**Cons:**
* High fees and expenses
* Potential for loss of principal
* Complex contracts
* Limited investment options
Before you decide whether a whole life annuity is right for you, it is important to speak with a financial advisor.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.
Emini Day Trading /
Daily Notes /
Forecast /
Economic Events /
Search /
Terms and Conditions /
Disclaimer /
Books /
Online Books /
Site Map /
Contact /
Privacy Policy /
Links /
About /
Day Trading Forum /
Investment Calculators /
Pivot Point Calculator /
Market Profile Generator /
Fibonacci Calculator /
Mailing List /
Advertise Here /
Articles /
Financial Terms /
Brokers /
Software /
Holidays /
Stock Split Calendar /
Mortgage Calculator /
Donate
Copyright © 2004-2023, MyPivots. All rights reserved.
Copyright © 2004-2023, MyPivots. All rights reserved.