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Arkansas Insurance Blog

Facts about financial annuities insurance

If you are looking for a second income stream or you want a break from your taxes, you might want to look into getting a financial annuity plan up and running. It might appear complicated, but we can make this as easy for you as possible. We outline some facts about financial annuities so you can decide whether it is the right option for you.

Adams Insurance & Financial in Northwest Arkansas offers financial annuity options. Please don’t hesitate to get in touch to discuss options that work best for you and your lifestyle.

What is a financial annuity?

An annuity is a type of investment where you pay a larger sum of money that is paid out in installments like a regular type of income. People might want to do this as an investment opportunity as their money can become worth more over time. You can choose to receive fixed payments immediately after purchasing the annuity or you can wait to receive payments at a later date, for example, when you retire. 

An annuity allows you to receive money right away.

There are two main types of annuity you can pick between. If you get a deferred annuity, this means you will be paid out at a later date, while in the case of an immediate annuity, you get access to your payments immediately. 

An annuity can help with taxes.

Because an annuity is a type of insurance, you might qualify for some tax breaks or deductions. Therefore, a financial annuity can be a great way to get some relief from your taxes!

If you want to discuss financial annuities in more depth with us, you can call Adams Insurance & Financial in Northwest Arkansas or you can compare quotes via our website. 

Can You Add Your Garage and Other Structures to a Home Insurance Policy?

You just added a new garage to your property or have a variety of different storage sheds that you want to protect with your home insurance. But is this possible? Adams Insurance & Financial can help Northwest Arkansas residents understand their rights and what kind of protection is possible for their needs.

Understanding Your Garage Coverage 

Your home insurance should cover the various structures on your property, as long as your policy was purchased with these items on the property. However, adding new structures will change the value of your property, meaning that your coverage may not help you if these structures go over the worth of your current policy. This situation often happens when you add things like:

  • Garages on your home that increase property value
  • Buildings you may rent out to others 
  • Storage sheds where you can place many types of equipment 
  • Other types of storage options

These types of addiction coverage options can be added to your home insurance policy to protect you. Typically, they are only necessary after your insurance policy has been purchased based on your current home value. However, it is also possible to change your insurance policy based on your new house value, if necessary. Doing so can help to ensure that you get the best level of home insurance. 

Don’t Let Your Garage Get Damaged 

As you can see, it is possible to protect your Northwest Arkansas garage using high-quality home insurance. But if you’re still confused about this situation and aren’t sure what to expect, it is a good idea to talk to us at Adams Insurance & Financial right away to learn more. Our team will help sort through your situation and provide the help necessary to understand your insurance needs as a person better.

What Kind of Annuity Is Best to Provide an Income Stream?

Many people don’t realize that choosing the right annuity can actually provide an income stream for you. This income could be a fixed or variable amount and could last for a significant amount of time if planned correctly. Luckily, Adams Insurance & Financial serving Northwest Arkansas are the experts for all of your annuity needs.  

Annuities are a valuable way to provide an immediate and constant stream of income. This is particularly true for older individuals who are concerned that they have not managed to gather as much in retirement savings as they will need to last until their death.

An income annuity essentially swaps a lump sum payment made by an individual or a couple and turns this into a guaranteed stream of periodic income.  The purchaser of the annuity can expect to begin receiving payments from their annuity either immediately or within a month or so after they are purchased.

There are a wide variety of annuities, but the ones that provide an immediate stream of income are generally known as:

  • Immediate Annuity
  • Single-Premium Immediate Annuity (SPIA)
  • Immediate Payment Annuity

People who have more time to go until retirement can also plan ahead and purchase a deferred annuity that won’t begin paying out till many years down the road. This type of annuity would not provide an immediate income stream, but it would be a promise for guaranteed income in the future. 

If you are looking to open an annuity in Northwest Arkansas, Adams Insurance & Financial can direct you towards which type of annuity is right for you and explain the differences in fixed and variable investments. Annuities can be fixed or variable and they typically are designed to last for the life of the purchaser.

How Do Annuities Work?

With so many options for refunding retirement from Roth IRAs to pensions to 401Ks, it is easy to forget about an investment vessel known as an annuity. In short, an annuity is a contract between yourself and an insurance company with agreed-upon goals that could include lifetime income, principal protection, legacy planning, or long-term medical cost planning. An annuity is often referred to as an investment. Still, it is important to recognize that it is a transfer of risk contract that locks you and the insurance company into certain obligations that can only be broken in extreme circumstances. Annuities work by providing the policyholder with access to limited funds on a specific cadence like monthly or annually and can be considered similar to income received via Social Security.

While there are many reasons to purchase an annuity, the most common is because it provides guaranteed income for the entirety of your life. Like other insurance types, the policyholder pays a premium to the insurance company to harbor the risk of an annuity. This payment can be made over a specific period of time or in a single lump sum and is considered part of the insurance accumulation phase. Unlike auto or home insurance, you don’t pay an annuity premium indefinitely. Eventually, you stop paying for the policy, and it begins to pay you in what is known as the payout phase. 

At Adams Insurance & Financial in Northwest Arkansas, our friendly and talented team of insurance professionals are ready and willing to answer all your questions on annuities. We’ll work tirelessly to ensure that you understand the specific aspects of your annuity and customize a policy that best meets your future needs. Give Adams Insurance & Financial in Northwest Arkansas a call today to learn more about how we can help you secure your financial future.

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