Fixed annuities can be of the ‘life annuities’ type or ‘fixed term’ type. Life annuities promise regular payment to the owner of the annuity till the death of the owner. The benefits of life annuities are many, and there are several kinds of life annuities, each available for different situations and levels of financial protection to the owner. The various life annuity plans comprise of different insurance components for the owner, and hence, the benefits derived from the various annuities are varied. Let’s look at the different life annuity plans available in general and their advantages.

Straight life annuities - are the simplest form of life annuities and insure a steady, specified income to the annuity owner until death. It doesn’t guarantee any insured income or transfer of benefits to the beneficiaries after the death of the annuitant. Because of it’s limited insurance component, straight life annuities cost comparatively lesser.

Substandard health annuities – are straight life annuities specially designed for annuity purchasers with serious health problems. Compared to normal straight life annuities, the payments received from these annuities are lower. The benefits for this type of annuity are mainly derived from a more frequent pay-in at times of need. This is especially helpful for people going through phases of treatment and medication. The cost of these health annuities depends on the probability of the annuity owner’s survival and on the life expectancy of the annuitant. A lower life expectancy will increase the cost of the annuity.

Life annuities with guaranteed terms - offer more financial protection in comparison to a normal straight life annuity because they allow the annuitant to assign a beneficiary to whom the remaining value of the annuity will accrue to, if the annuitant expires. However, in such cases, the lump sum payment to the beneficiary may result in a significant payout to tax. With a joint life annuity contract, the chances of losing considerable amounts to taxation in case of the death of the annuitant is avoided, and at the same time, such annuities ensure a specified payment at regular intervals to the spouse, after the annuitant's death. Naturally, both these types of annuities have an attached additional cost for this insurance.

Life annuities are more expensive than all other forms of annuities, yet the most popular. The cost of an annuity as well as the monthly payment promised by it depends on the insurance coverage packed in the plan. An annuity spread over a longer time, the protection against illness or untimely death of the owner, and the life expectancy of the annuitant – all decides the cost and the amount of the payment to be received at the regular intervals. The price of a life annuity includes the money invested in the annuity as well as the premium being paid for the insurance components. If you have a query about fixed or life annuities, Click here or call AnnuityLibrary.comtoll-free at 1-800-998-4056. Annuity experts at the AnnuityLibrary.comcan guide you to select the best suitable life annuity plan that is beneficial to you and your family.