Understanding the Basics of Fixed Annuities

by | May 21, 2019 | Insurance Services

How much do you understand about annuities? Many people who come to Arif Halaby for annuities do not have much knowledge about what they are or how they truly work. It is important to discover the basics of what they are and how they work before you consider them as a strategy.

Simply put, a fixed annuity works as a contract between an insurance company and you. There is the potential for them to help you reach your financial goals in the long-term. The potential owner of the annuity will make a premium payment, and then the insurance company provides income to you. This could start immediately or might start the point you determine later.

During the first phase of the annuity, money will accumulate through the earning of interest. Once this phase is complete, there will next come the payout phase, where you receive money from the annuity. It is important to keep in mind that fixed annuities will guarantee that you will get at least the minimum guaranteed interest that has been added to the contract. The principal and the bonus with annuities are not affected by risks in the market index.

This simply means that if the market suddenly drops, the contract values will not drop. This helps to make annuities a more protected option that appeals to many out there who often have fears over how they are allotting their money for retirement.

For those who have more questions, you may want to contact Arif Halaby for the annuities answers you need. Take the time to discover more about the options that might be right for your retirement funds and find the solution that will work best for your financial situation and needs right now.

Choose the Best

Consider working with Arif Halaby for annuities for a number of reasons. He has a history of helping people to stay safe. He was in the Los Angeles Police Department for 11 years helping to keep people and property safe. He also has 22 years of experience as a professional when it comes to creating retirement strategies, and he wants to help people save and protect their money. He is licensed in multiple states. You can get in touch now to find out more about annuities and other options that are available to you.

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