As individuals become older their retirement options can become much more limited. Single premium annuities allow individuals that either receive some type of windfall large sum of money, or perhaps those that got a late start in retirement planning to participate in utilizing the power of annuities for their retirement plans.

The single premium annuities term refers to the pay-in method of funding an annuity. With a single premium annuity, a specific amount is paid just once without any further contributions. The investor then receives periodic returns on the amount funded into the annuity.

The single premium concept is nothing really new. Individuals have long had access to other single premium insurance products – as an example, it is possible to buy single premium universal life, single premium whole life and single premium variable universal life. The whole idea behind the single payment concept is be able to purchase an insurance product with a fully guaranteed contract that will never require additional funding in the future. Of course there are always going to be exceptions and variations to different single premium plans that may not fully guarantee future results so please always do your research and consult with someone knowledgeable before investing.

A couple of payout options are available for single premium annuities:

Single premium immediate annuity: A one-time lump sum is invested for the purpose of creating an immediate income stream. The payments can be set up by the investor to be received monthly or perhaps even less frequently. An income stream for the investor will begin at a pre-agreed time. Any time length can be agreed upon for the payout varying from a specific number of years to a continuing lifetime guaranteed payment.

Single premium deferred annuity: Again, this is created as a one-time lump-sum investment. The single premium annuity can be one of several different types including a fixed annuity, an indexed annuity and a variable annuity. This type of annuity would normally be made to create a farther in the future strategic income stream for retirement.

So, after a one time investment and the agreed upon period of time, the payouts begin providing an ongoing source of income for the investor.

Annutities can be used for retirement funding, to provide care for dependents, and also for gifts. Annutites can be used to provide a source of income to dependents after your death. Annuities can be used to provide specified child support or even alimony payments. Annuities can be used to fund specialized education and care for a disabled child. Annuities can be used to consolidate assets and turn them into a stream of income.

With the Single Premium Annuity, you have a wide variety of income plan options. You can receive income for a specified number of years, the rest of your life, or for the joint life of yourself and a beneficiary.

For more ideas and information about annuities and other financial products check out the insurance blog at recentaddition.com . There are many types of annuities that an investor should become familiar with before buying an annuity. The most important thing to remember is to do as much research on your own as possible, get an idea of what you believe will work best for you, then allways consult a licensed professional before making any investment. For more articles like this, visit www.AnnuityInsuranceLife.com

By: Don Beavers

Life settlement refers to a financial transaction in which a person sells their existing insurance policy to a life settlement company for some percentage of a policy amount. The selling price of a policy is no doubt less than its face value but it can be five to nine times greater than surrender value of the policy. Life settlement provides instant money which is enough to cater to your long term care needs.Once you have sold your policy, the life settlement company becomes the new owner and beneficiary of your policy and it will collect all the benefits after policy maturation. Besides offering you an instant amount for your policy, the settlement company also becomes responsible for paying all of the insurance premiums until maturity of the policy. Senior citizens over 65 years of age and have a viable insurance policy can opt for life settlement. However, considering a life settlement is a critical decision and should be thought thru carefully after reviewing your needs and concerns.A few reasons to consider to selling your insurance policy are:

You require funds to pay for long term health care or housing needs.
The policy is about to lapse or you are planning to surrender it.
Insurance premiums are no longer affordable.
There has been a change in your health status since you first purchased the policy.
You are interested in new life insurance, annuity or long term, care coverage.
Changes have been introduced in estate taxes.
In spite of so many reasons for selling an insurance policy, some people may still want to keep the life insurance policy as all individuals have different goals, situations and requirements. Here are some instances where you might consider keeping your policy instead of selling it.
You have to pay off a large debt or mortgage. In this instance, the death benefit can be utilized for paying off the mortgage.
You want to pass on your legacy to your desired charity. You can name your favorite charitable organization as the beneficiary of your policy.
You want to leave a death benefit to your survivors such as your spouse, children or grandchildren.
In case of your or your spouse’s death, you will face a major state or federal estate tax. Life insurance can be used to pay off estate taxes which are due.
You wish to have an assisted living facility, a nursing home or a home health aide but are short of money to pay for such care. You may use the cash value of the policy to pay such expenses.
Considering a life settlement is an important decision that should only be made after fully understanding your needs and requirements. Feel free to browse through http://www.mickelsonlife.com for more information on life settlements.

By David Mickelson