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The difference between a lump sum and annuity is, lump some you get a anywhere between half or 3 quarters of the money. An annuity is where you will get a certain amount of money for a certain amount of years.
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Is a annuity worth more or less than a lump sum payment received now that would be equal to the sum of all the future payments?
It is worth more than a one lump sum.
Which of the following is a description of an annuity?
the insured agrees to make a lump-sum payment or series of payments to an insurance company...
Which type of insurance contract requires a lump sum or periodic payment in exchange for receiving periodic payments from the insurance company?
As you have described it, this sounds very similar to an annuity.
Lump Sum Present Value Calculator?
Lump Sum Present Value Calculator Use this calculator to determine the present value of a future lump sum.
What is the difference between sum assured and sum insured?
No difference. Some companies use each word interchangeably.
What is the difference between lump sum settlements and an annuity?
Lump sum refers to money that is paid in full up front typically from a settlement. Annuity settlements are when the payments are made over time in installments.
Can you sell your military retirement annuity for a cash lump sum?
yes
What factors affect one's choice between an annuity or a lump sum pension distribution?
One of the positives of an annuity are guaranteed income for life, but a negative is one would only get a fixed amount each month. A positive of lump sum is one has access to money to do whatever one pleases, but a negative is having a lump sum makes it easy to spend it all at once.
How can you sell your military retirement annuity for a cash lump sum?
Explain! Yes is not an answer...
In joint life annuity one person dies does survivor get lump sum?
No, not unless the survivor asked to surrender the policy. If the survivor wants a lump sum, it is available.
Is a annuity worth more or less than a lump sum payment received now that would be equal to the sum of all the future payments?
It is worth more than a one lump sum.
What percentage fee does an annuity settlement buyer usually charge?
Annuity settlement buyers offer you a lump sum in exchange for the future payments you are due to receive. Most of the time these companies offer a 50% - 60% lump sum of the total payments.
What is the difference between annuity and pension?
Pension fund generates a one sum that can at some time be withdrawn and used. On the other hand annuities are a relatively secure income that starts paying out at one fixed date after you are finished working. Many people prefer annuity precisely because of this security aspect. Under Pensions you contribute periodically and create a lump sum upto a specified minimum Age. In UK it is currently 55. If you would like to stop accumulating at this age, you get a lump sum. With this lump sum you can start withdrawing in selected frequency (note that the capital(lump sum) gets depleted as you withdraw, unless the Capital is not generating any further income. On the other hand you can buy an Annuity, which is a periodic payment to you based on your lift expectancy (how long you live futher). This is called Secured Pension and the earlier withdrawal type is unsecured pension (because of depletion/the Funds under investment not doing good). In India, we call it as pension and annuity are clubbed together. That is you accumulate and start getting an income as Annuity under the same policy. Please note that when you decide to buy annuity with the accumulated amount, universally, you have an option called Commutation or Tax Free Cash (upto maximum of 25%) to take home in lump sum and the rest is used to give you annuity.
What is the concept of selling annuity about?
Selling an annuity is basically taking a lump sum withdrawal from it. People use it as an investment tool to defer paying taxes on a portion of their money.
Which of the following is a description of an annuity?
the insured agrees to make a lump-sum payment or series of payments to an insurance company...
Is there a difference between a reverse mortgage and a reverse annuity mortgage?
The terms are similar and both relate to reverse mortgages, however a reverse annuity mortgage often refers specifically to reverse mortgages where the borrower chooses to receive monthly payments from the lender rather than getting a lump sum of cash upfront or a line of credit.
Can pension benefits taken as a lump sum be paid in one payment or does it have to be paid in an annuity?
This will your choice that you will have to make. If you choose to take the pension benefits as a lump sum distribution you would receive the total amount at one time. If you choose to receive it as a annuity you will receive periodic payments over a number of years.
