Annuitant Sentence Examples
This means the annuitant would need to be over 70 years of age given the current rate of annuity interest.
It assumes the annuitant purchases the annuity for the ages from 55 to 70.
If the annuitant chooses to cancel the annuity, he or she is guaranteed to receive a minimum payout.
This type of annuity can be set up so that the annuitant receives an income for life while being able to control the principal amount invested in the plan.
However, with an enhanced or impaired life annuity the worse the medical conditions the higher will be the income paid to an annuitant.Advertisement
An individual starts a plan and deposits funds, then in turn the funds are invested on behalf of the customer, or "annuitant."
The deferral in the title refers to the fact that annuitant will not receive any payments from the plan until later.
With this type of investment plan, the annuitant is not taxed on any of the interest earned on the money until he or she starts to receive payments.
As the money is removed from the fund, the annuitant is taxed on the payments.
An annuitant may get a higher rate of interest in some years, but the company guarantees that the value will never be lower than the minimum provided by the plan.Advertisement
When the annuitant is ready to start withdrawing funds from the plan, he or she will likely be in retirement and the money withdrawn may be taxed at a lower rate than when the individual was working full-time.
Money can be taken out of the annuity through a system of regular electronic withdrawals or the annuitant can access the funds as needed by writing a check on the annuity account.
When the company receives either a lump sum payment or a series of deposits to the annuity, the annuitant's return is linked to the movement of an index on the stock market.
Once the annuitant is ready to start receiving payments under the plan, he or she can choose from a number of payout options.
If the annuitant dies before this date, his or her beneficiaries receive the balance of the payments.Advertisement
With this type of income product, there is no accumulation period where the annuitant makes one or more payments into the plan.
Instead, the annuitant makes a single or multiple payments into the plan and the insurance company guarantees to provide payments based on the amount deposited into it.
They provide a lifetime income to the person who paid into the plan (the annuitant).
The accountholder, or annuitant, can either deposit funds in a lump sum or make a series of smaller deposits over time.
During this accumulation stage, the funds in the annuity are invested on the annuitant's behalf.Advertisement
The money grows on a tax-free basis until the annuitant is ready to start withdrawing funds.
If the annuitant needs to withdraw funds from the plan before he or she reaches retirement age, he or she can withdraw up to 10 percent of the amount held in the plan per year.
When the S&P Index rises, the annuitant's account is credited with interest.
If the S&P Index falls, the insurance company protects the annuitant's principal against loss by providing him or her with a lower interest rate.
During these times, an annuitant will still earn approximately 2 percent on his or her investment, although this amount can vary.Advertisement
Since the funds are not taxed as long as they are in the annuity, the money has the potential to grow faster for the annuitant.
Once the annuitant is ready to start withdrawing funds from the plan, they will receive payments for life.
The person buying the annuity (the annuitant) can make either a lump-sum deposit or contribute specific amounts to the plan over time.
The funds are invested on the annuitant's behalf in stocks or mutual funds.
The annuitant arranges to withdraw funds from the plan when he or she reaches retirement age.
Depending on the specific plan, the insurance company may make payments for a set amount of time or guarantee a lifetime income to the annuitant.
They do this to ensure that the details given in the application form are correct before paying the annuitant an income.