Thursday, September 09, 2010
Factors
That Determine
Annuity Income
All of the following factors affect the amount of income generated by an annuity.
Interest Rate
The interest rates at the date of deposit or the rates established previously with a rate guarantee.
Mortality
The life expectancy of the annuitant(s).
Annuity Type and Options
The choice of annuity type, (e.g. Single Life) and options (e.g. Indexing, Return of Premium, etc.) will affect the amount of income.
Guarantee Period
The longer the Guarantee Period, the lower the income amount.
Premium Amount
The larger the premium the greater the income payment.
Income Deferral
The period of time between the Purchase Date and the Income Start Date.
