Buying an annuity may be an ideal way for California residents to help secure their financial future. Those who live by themselves may be interested in purchasing a single life annuity. This type of product may also be ideal for those who don’t need something that comes with a death benefit.
What are the potential benefits to a single life annuity?
Perhaps the best reason to buy this type of product is that you will receive a steady paycheck during your retirement years. They are ideal for those who are currently between the ages of 50 and 70 because the amount that you’ll receive from the annuity is more than the cost associated with buying it.
What are the potential drawbacks to a single life annuity?
For many people, the biggest drawback to this type of product is that there is no death benefit. In other words, your beneficiary doesn’t receive a lump sum payment or a series of payments after you die. It’s worth noting that an exception may be made for your spouse. Another issue to consider is that it may not be effective for married couples who have limited means.
Other products may best meet your needs
If you are married and need income after your spouse passes away, a joint and survivor annuity may be the estate planning tool that best meets your needs. In most cases, your name will appear as a beneficiary, which means that you’ll receive monthly payments after your spouse dies. In the event that you are under the age of 50, investing in the stock market may offer better returns than an annuity.
There is a chance that you may live for years or decades after you are no longer able or willing to work. Therefore, it’s a good idea to educate yourself about the various products that might provide a steady income during your senior years.