When life happens: Eleos Life shows how annuities help you plan for a long retirement
People are living longer, and that is good news. It also means your money may need to last 25 or 30 years after you stop working.
Kiruba Eswaran, CEO of Eleos Life, explains what annuities do and what to watch for.
Step 1: Think of Annuities as the Mirror of Life Insurance
Life insurance helps if you die sooner than expected and have not saved enough. An annuity helps if you live longer than expected and your savings run out.
Step 2: Choose Between Growing and Getting Paid
1. Grow: pay in, and your money earns a set rate for a fixed number of years.
2. Get paid: swap a lump sum for monthly payments, which can continue for the rest of your life.
Step 3: Weigh the Benefits and the Limits
Annuities can give you a guaranteed rate and tax-deferred growth. But if you need the money early, fees can apply. Keep them for money you can leave alone.
Step 4: Decide What Happens After You Are Gone
Standard income payments end at death. If you want money to pass to your family, or keep going for a spouse, you can add a guarantee. That lowers the monthly amount.
Step 5: Look at What Most Buyers Do
Of the roughly $460 billion Americans put into annuities last year, about 96 percent went to growing savings. About 4 percent went to lifetime income. Most people use them as a steady place for money to grow.
To learn more about long-term income, visit https://www.eleoslife.com/
About Eleos Life: Eleos Life is a digital provider of life and disability insurance in the United States. Eleos life also works with trusted partners to bring families clear information, simple online applications and cover that fits their needs.