The annuity funds have two aspects, first one is investment and second one is security purpose. You need to take the major benefits of the annuity funds as per your needs. The positive aspects of investing in the annuity funds is to get the tax benefits on the withdraw of funds. Incase of death of investor, the benefit will transfer to the beneficiaries. There are five key features of the annuity plans such as life only, certain types, fixed period, fixed amount and joint and last survival benefits.
1. In the life only plan, you need to invest in for longer period till your life end. The annuity will pay you till the death benefits. After the death of investor, company pays the rest of the amount to the survivor of the investors.
2. In certain types of annuity plan, the person gets the return on fixed period of time. The term period varies from 5 to 20 years time. If person die before the time period than your survivor get the benefits. If you live longer period than you will get the benefit till person get die.
3. You will get the benefits of 401(k) plan to get the tax advantage.
4. In fixed period, the beneficiary get the regular income in terms of annuity for the defined period of time like if you invest for 15 year than you will get the return for certain period of time. Incase of person get die than remaining average amount get by the survivor.
5. In the joint and survivor plan, the person gets the double benefits. There are two person named in the policy when one person die benefits are still continue.
