Best Annuity Rates – How to Get a High Annuity Income
Best Annuity Rates Guide…
An annuity is an investment policy that can guarantee you an income for the rest of your lifetime and even allow you to leave something for your loved ones. How much exactly, though depends on the annuity rate you are able to get.
Due to recent economic trends, annuity rates have dipped in the past few years. However, you can still get a good rate – around 7, 8 or 9% – if you know how to work the market.
Here are some tipes to help you find the best annuity rates:
1. Use the Open Market Option.
Most pension providers are also annuity providers. However, instead of getting an annuity automatically from your pension provider, it is recommended that you shop around the market first, which is called the Open Market Option.
By getting annuity quotes from other providers and comparing different annuity policies, you have a chance of getting better rates, the best in the market, in fact.
2. Check if you qualify for an enhanced annuity.
Did you know that you don’t have to be terminally or even seriously ill to qualify for an enhanced annuity?
Enhanced annuities offer some of the best annuity rates around. This is because they are designed for people who are suffering from medical conditions, which significantly lower life expectancy.
This does not mean you need to have cancer, heart disease or lung disease to qualify. In fact, if you have diabetes, asthma, are taking regular medication or have been previously hospitalized or operated on, there is a chance you could qualify for an enhanced annuity.
You don’t even have to be sick. If you are well above the average weight, have been smoking for a long time or drink excessively, you can also qualify.
3. Choose a variable or escalating annuity rather than a fixed annuity.
A fixed annuity comes with a fixed rate, which means it guarantees you a specific income for the duration of the contract. This isn’t exactly a bad thing, but when inflation hits the economy hard, you might find yourself not earning nearly enough.
Variable annuities offer changing rates depending on economic trends so they can either increase or decrease while escalating annuities offer only increasing rates, though the amount of the increase is also dependent on certain factors.
4. Seek financial advice.
You have a lot of options available once you decide to look into the market, and to avoid being overwhelmed or getting confused, you might want to get an annuity adviser.
An annuity adviser will help you choose the right provider and right type of annuity so you can enjoy the best annuity rates.
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