Single Pay Annuities from Best Insurance Direct™

An annuity that you fund by a single premium payment is termed as single payment or single premium annuity. The payment can either be invested for growth for a long period of time like in a "single premium deferred annuity" or invested for a short time, after which the payout begins for example a "single premium immediate annuity". Single premium annuities are often funded by rollovers or from the sale of an appreciated asset. Generally fixed rate annuities allow only one initial single premium due to continuously fluctuating interest rates. If annuity holders want to invest more with similar terms they are advised to contract a second annuity.

You have worked very hard over the years to plan for a comfortable retirement so it is very important for you to know what is the best way to protect your assets and get financial freedom. Single premium annuity is a great financial product that provides you with an immediate and steady income stream for as long as you choose.

Some example are given below to make it clear that when single payment annuity is more relevant:-

Single premium deferred annuity- It is a tax-deferred investment plan in which an individual makes a single payment to a mutual fund or insurance company more or less similar to an IRA, but having no annual contribution limit.

Almost always, fixed rate annuities allow only one initial single premium due to continuously fluctuating interest rates. If annuity holders want to invest more with similar terms they are typically advised to contract a second annuity.

A single-premium immediate annuity can prove to be a great way to ensure that you will not outlive the funds you put aside for retirement. By simply making a single contribution to a single-premium immediate annuity, you can establish an immediate and steady income stream for as long as you choose, a specified number of years or even for the rest of your life.