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Currently the following options are available under LIC's immediate annuities:

1. Annuity for life: The annuity is paid to the life assured as long as he/she is alive.

2. Annuity Guaranteed for certain periods: The annuity is paid to the life assured for periods of 5 or 10 or 15 or 20 years as chosen by him/her, whether or not he/she survives

that period. After the chosen period, the annuity is paid to the life assured as long as he/she is alive.

3. Annuity with return of purchase price on death: The annuity is paid to the life assured as long as he/she is alive. On the death of the life assured, the purchase price of the annuity is paid as death benefit. The purchase price includes the Sum Assured under the Basic Plan, the accrued Guaranteed Additions and any accrued bonuses, excluding the commuted value, if any.

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Q: What is the meaning of annuity guaranteed for 5 years and for life thereafter?
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What is immediate annuity and what is it used for?

An immediate annuity is something that will give you a stream of income for life. You can purchase them from insurance companies. They are great because even if you live to be 120 years old you will still get payments.


Application of annuities in financial management?

It would depend on weather it is an immediate or a differed annuity contract. An immediate annuity would provide guaranteed income for a specified number of years or over the life time of the insured regardless of how long the annuitant lived. A deferred annuity provides for long term tax deferred growth and if its not in a qualified plan the annuity holder is not limited to the amount deposited each year.


Can you switch your annuity to an IRA 1035?

You mean a 1035 exchange to an IRA? Perhaps your annuity is an IRA already? What are you trying to accomplish by switching? Is there a surrender charge? How old are you? Are you looking at a Roth or Traditional IRA? You should be looking at switching to an IRA or annuity paying out 10% tax deferred interest guaranteed over the next 10 years depending on your age.


What is the meaning of annuity?

A sum of money, payable yearly, to continue for a given number of years, for life, or forever; an annual allowance.


Is a fixed annuity invested in only bonds?

A fixed annuity is invested with the insurance co who then invests in a variety of things. All you need to worry about is that with a fixed annuity it is all guaranteed and there is zero risk. Currently you can get a guarantee of 6% interest for 10 years at a period of time when banks and the FDIC are failing and the market is down. Insurance companies are your safest bet as they know how to manage risk.


What is an immediate fixed annuity?

They are a type of life insurance contract. It is an insurance policy where by paying a sum of money, it is guaranteed that the provider will make a series of payments. They may be a fixed term or number of years or may be until death.


How should you diversify an annuity acct in a failing market?

It depends on when you will need your annuity money. How far off from retirement are you or are you in retirement? There are very attractive guarantees out there now like 6% guaranteed over 10 years. If you need money sooner than maybe put some in at the 6% and some in a shorter period. It is all based on your needs.


What are the best annuity rates?

Annuity rates are a tricky topic. Annuity rates have been fluctuating the past few years. Ever since the recession hit, the annuity rates have been rising and there is hope that will continue to. Based on the current market , an annuity rate that is between 8% and 15% is considered a good annuity rate.


What are the benefits of a variable annuity?

A variable annuity is beneficial in an economy such as ours now. That way, when interest rates rise (however many years that will take), your annuity will also be at a higher rate.


What Annuity is best if you are dying and you want to guarantee payments to spouse for 20 years?

annuity payments can be structured for 20 years certain or other term/period certain payouts. Other optional annuity forms of payouts are also available from insurance companies underwriting annuity contracts such as life and joint/survivor payout options.


What are the best annuities?

Annuity rates are a tricky topic. Annuity rates have been fluctuating the past few years. Ever since the recession hit, the annuity rates have been rising and there is hope that will continue to. Based on the current market , an annuity rate that is between 8% and 15% is considered a good annuity rate.


Income from a 300000 annuity?

I think that you mean income from a 300,000 capital lump sum. Correct? An annuity is when your capital is used to buy an income for life. There are two forms of annuity, purchased and compulsary. Purchased means you take your savings and buy an income for the rest of your life. A compulsary annuity is when your savings have been accrued in a tax exempt pension sceme and therefore you have NO CHOICE about buy an annuity with them. Okay, whatever the type of annuity, you get the choice of what type of annuity you buy as follows:- (1) Straightforward annuity. No guarantee. When you die, the income ceases. (2) Guaranteed annuity. The income would be paid for 5 or 10 years whether you were alive or dead. If the latter, it would be paid to your estate for the residual period of the guarantee. (3) Joint life annuity. If you are married and were to die first, the income would be paid to your wife until she died. (4) Indexed linked annuity. The income would be increased at a maximum of 5% per year to offset increases to the cost of living. Note that each time you add sophistication to your choice of annuity, the start level of the annuity would be lower. Also note that annuity rates fluctuate in line with bank interest rates. You should shop around to find the highest annuity payer as rates differ between different insurance companies.