Definition
Individual Annuities – Special are types of annuity contracts that possess unique or notable features differentiating them from standard annuity products. These special features might include unusual investment options, enhanced benefits for certain conditions, or specific approaches to payouts.
Key Features
- Variable Rates: Unlike fixed annuities, some special individual annuities may offer variable rates tied to the performance of underlying investment portfolios.
- Benefit Enhancements: Special provisions might be included such as increased payouts under certain conditions like diagnosis with a critical illness.
- Flexibility in Withdrawals: Unconventional withdrawal options may be offered to better meet the specific financial needs of the annuitant.
Important Considerations
Choosing a special individual annuity involves understanding how its distinctive features align with personal retirement and financial goals. It is advisable to consult with a financial advisor to comprehensively examine the implications of these features.
Related Legislation
In the U.S., annuity contracts and their regulations may involve specific state laws and regulations, as well as federal legislations such as the Employee Retirement Income Security Act (ERISA). Potential annuitants should be familiar with these regulations to understand how they impact the characteristics of special annuities.
External Resources
- Investopedia on Annuities: An extensive guide detailing the different types of annuities and what to consider when choosing one.
- AARP on Buying Annuities: An easy-to-understand piece on considerations before purchasing annuities.
