A life annuity means a life retirement insurance option. Though many people choose this plan, it is necessary to first understand the benefits and drawbacks, before deciding to opt for this retirement plan.
BENEFITS: Many retiring people opt for the straight life annuity as it provides the person with the opportunity to create a regular income during the retirement period. There will be no need to worry about monthly income, withdrawal from savings etc as this plan ensures that your retirement life is insured.
The best part of this is that your retirement income is given to you every month, with just one time payment done from your part. There are also different year spans for which you can buy insurance, which means either a 20 year, 30 year plan etc. But the day the plan date expires, you will stop receiving payments, if you live beyond the retirement time span.
