SBID2008

Source:  (PRWEB)

AccuQuote, a leader in providing term life insurance quotes (http://www.accuquote.com) to people across the United States, explains five reasons why annuities can be useful savings tools in today’s economic condition, especially when other savings tools may not offer the best return.

Annuities offer consumers a way to earn more and keep more without taking needless risks. Udell explains five reasons why annuities can be useful savings tools:

1.    Low Risk – Unlike many savings tools, annuities are not subject to stock market fluctuations. In fact, they are often compared to CD’s because they allow your money to grow safely with low risk. And historically, they have often exceeded the average rate available on bank CD’s.

2.    Guaranteed Rate of Interest – Some annuities are currently guaranteeing as much as three to four percent interest for as long as five years.

3.    Tax Deferral – Annuities earn interest on a tax-deferred basis. This means that, unlike CD’s, money markets and savings accounts, you don’t pay tax on the interest you earn until you decide to withdraw the money.

4.    Lifetime Income – When you are ready to retire, you have the option to elect a lifetime monthly income that you cannot outlive. No other financial product can deliver this important benefit.

5.    Issued by Top-Rated Life Insurers – Annuities are backed by the full faith and credit of some of the largest and most financially stable life insurance companies in the world.

“As you shop around for an annuity, keep in mind that annuities offer many benefits that traditional retirement savings plans can’t,” says Udell. And, an annuity is uniquely flexible, allowing you choose from several different types of annuities and customize its features based on your terms