Retirees and other investors are encouraged not to overlook annuities as an investment vehicle. In recent news, annuities continue to grow in popularity; especially for the underfunded middle class. In fact, 78% of annuity owners have purchased annuities as a component of their retirement income. 83% have purchased annuities to ensure income no matter how long they live past life expectancy.

Annuities are available from financial firms in a variety of forms and term offerings. Of course, before investing in any annuity sit down with your personal financial advisor to discuss the pros and cons of an annuity investment in your portfolio.

Annuities are formulated on a yearly basis, and their terms reflect that. An annuity investor may opt to receive annuity payments on a monthly basis or on a yearly basis.

Each month, an annuity investor pays into the annuity policy. Alternatively, the investor can pay into the policy once a year, to simplify accounting. In this way, an annuity is similar to an insurance policy. At retirement, the payments reverse, and the annuity owner receives monthly or yearly payments from the policy. These payouts begin at retirement, or at a set date that is specified by the owner in the future. The flexibility for receiving payments is one reason why more people are considering annuity investments.

It’s important to note that annuities do not replace best ULIP plans. Though annuities might seem similar to a life insurance policy, there are many differences. First, annuities pay out while the owner is still alive. They are meant to support financial needs during retirement. Second, some kinds of annuities can end up paying out in excess of the total of the original investment. An insurance policy in addition to an annuities investment is recommended to ensure a fully balanced portfolio.

For these reasons, it’s recommended that you cover your financial investments with an added layer of protection through the ULIP Plans. This will provide extra protection as well as additional investment opportunities that you may not have elsewhere.

Annuities may seem complicated once you start looking into them. But with careful planning with a financial expert, they can be an invaluable part of your whole investment portfolio.