Category 10
Annuity & insurance-based income
You hand an insurer capital and it contracts to pay you an income stream.
Everything in this category is paid the same way, so what separates one page from the next is the wrapper rather than where the money comes from: how much it takes to start, how quickly you could turn it back into cash, who does the work, how it is taxed, and how it fails. The line on each card says whether the income keeps arriving once it is set up or whether somebody has to keep working for it. If the mechanism itself is new to you, the course spends a whole lesson on it and is a shorter way in than any single page here.
Immediate Annuities
You hand a life insurer a lump sum and payments begin within a year, sized by your age and the insurer's pricing rate, running for a set term or for the rest of your life.
Read →Deferred-Income Annuities
You pay an insurer today for income that starts on a chosen date years from now; the waiting period plus pooled mortality is what buys the larger payment.
Read →Fixed Annuities
An insurer credits a stated rate of interest on your deposit for a set number of years, tax-deferred, and owes you the principal plus that interest at the end of the term.
Read →Fixed-Index Annuities
Your principal is never credited a negative index return, and in exchange the insurer keeps everything above the cap, participation rate or spread written into the contract.
Read →Variable Annuities
Your premium buys units in insurance-company subaccounts that rise and fall with markets, and any guaranteed income comes from a rider you pay for separately every year.
Read →Life-Insurance Cash-Value Strategies
A permanent policy builds a cash value you can withdraw or borrow against, so the income is really a loan taken against your own death benefit.
Read →Structured-Settlement Income
A legal settlement is paid as a fixed schedule of future payments funded by an annuity, and those payment rights can be sold or bought at a discount with court approval.
Read →