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Many people are considering moving from life assurance to annuities policies recently. This is a significant financial change. You may be looking for a regular income in your retirement, or perhaps you desire to ensure that your family is well off after your passing. In either case, an increasing number of individuals are making this financial decision. Okay, let’s delve into the main five causes people are making the life insurance to annuity switch.
5. Access to Professional Advice
1. Retirement Income Security
An attractive feature for changing is getting a regular income after you retire, you know? As you get closer to retirement age, a lot of people concern about living longer than their money.
Pension plans give you a guaranteed income for as long as you live, which is super reassuring when you’re planning for your retirement age. Like John Doe, who’s 65, he was worried about how he’d pay the expenses after retirement age. So he talked to a financial consultant and decided to switch his policy to an annuity, which gives him a consistent income he can count on.
2. Tax-Efficient Savings
A lot of people switch to an annuity for the tax benefits. With an annuity, you can increase your savings not taxed until you take the money out.
It’s a significant advantage if you’re higher tax rates now but think you’ll lower tax payments when you retire. Sarah Smith, a 55-year-old entrepreneur, was looking for a way to prepare for retirement age while reducing her tax liability. She shopped around and ended up converting her life insurance to an annuity because she thought it was the best way to plan for her future.
3. Estate Planning and Legacy
Switching Entire duration Assurance to an Pension can also be a smart way to set aside for your and leave something behind. With the right Pension, you can ensure your dear ones are taken care of post your passing.
It’s quite important if you want to leave something for your kids or grandkids. Take Michael, a 70-year-old grandfather, for case. His desire was to ensure his grandkids could bear university. Therefore, He changed his Entire duration Assurance to an Pension, and it will give his household a large settlement upon his death.
4. Flexibility and Control
Currently, annuities come with a bunch of options, so you can select a suitable choice your requirements and what you like. You’ve got stable annuities that ensure an earnings, or fluctuating ones that might provide a substantialger return. There’s something for all.
Emily, a sixty-year-old retired person, was interested in an deferred annuity that would provide her with both a secure income and the potential for growth. She thought about it and picked a variable deferred annuity plan that worked for her and gave her the desired flexibility.
5. Access to Professional Advice
The economic realm is super complicated, so a lot of people get advice from experts when they’re thinking about switching from life assurance to an deferred annuity. Financial advisors can guide you through the procedure, tell you about the different types of annuities, and suggest the most suitable option for you.
Mark, a fifty-eight-year-old engineer, was undecided about which deferred annuity to go with. He talked to a financial advisor who helped him weigh the experts and cons and decided on the best deferred annuity for his situation.
For more info on switching from life assurance to an deferred annuity, check out these material:
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