The annuity has defined in two faces one is for investment and another is for security purpose. You can get the several benefits of the annuity funds. You will get the benefits of 401(k) plan to get the tax advantage. On withdraw funds you need to pay less tax. Incase of death of annuity owner, the benefit will transfer to the beneficiaries. There are five main features of the annuity plans like options like life only, certain period, fixed period, fixed amount and joint and last survival.
• In the life only plan it will last long till your life end. The annuity will pay you till the death and after the death company pay you rest money to your survivor.
• In certain types of annuity plan the person get the return on fixed period of time right 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.
• In fixed period the beneficiary get the regular income in terms of annuity for the certain period of time like if you invest for 20 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.
• 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.
