A stretch annuity is an annuity that allows for payments to be made over a period of time that is greater than the life expectancy of the annuitant. This type of annuity can be useful for people who want to ensure that their beneficiaries will receive payments from the annuity even after they die.
What are the basic types of deferred annuities?
There are two basic types of deferred annuities: fixed and variable.
Fixed deferred annuities offer a guaranteed interest rate for a set period of time, after which the interest rate may change. The interest rate on a variable deferred annuity, on the other hand, will fluctuate with the market. How many types of annuity are classified? There are four types of annuities: Immediate, Fixed, Variable, and Indexed. What is the safest type of annuity? The safest type of annuity is one that is backed by the full faith and credit of the issuing government. The second safest type of annuity is one that is backed by the full faith and credit of a highly rated insurance company. What does MVA mean in annuities? MVA, or mortality credit, is a feature of some annuities that provides a death benefit to the annuity's beneficiaries. The death benefit is typically equal to the annuity's account value, less any outstanding loan balance.
What is the difference between a living annuity and a life annuity?
There are two main types of annuities: living annuities and life annuities.
A living annuity is an annuity that pays out income to the annuitant while they are alive. After the annuitant dies, the annuity payments stop.
A life annuity is an annuity that pays out income to the annuitant for as long as they live. Even if the annuitant lives for many years after purchase, the annuity payments will continue as long as they live.