Is Annuity insurance suitable for anyone, is it worth it or not?

Annuity insurance is a life insurance that focuses on saving money like accumulative life insurance. The insured must pay the insurance premiums for the period specified in the life insurance policy made. But the form of refunds There will be no refunds along the way. The policyholder must save money continuously until the retirement age (such as 55, 60 or 65 years depending on the type) and will receive a refund in the form of pensions until the age of 85 or 90 years depending on the model.


In addition to the pensions that will be received after retirement, the insured will receive protection due to death. And can use the pension premiums to reduce the tax as required by law.

Who is annuity insurance suitable for?

  • People who want to plan finances for a certain amount after retirement
  • People who can take fewer risks than investing for retirement. Other ways.
  • People who want benefits in risk prevention (Need life protection)
  • People who need tax deduction benefits

Benefits of annuity insurance

  • It is a money-saving guarantee that will be received after retirement. Saving for retirement is a long-term saving that requires a lot of discipline in saving. Alone if we save money by ourselves, we may not be able to save according to the goal. Therefore, when taking pension insurance, we can be sure that we will have some money for retirement.

  • Most of the money we receive after retirement is usually a lump sum such as funds from a provident fund. Lump-sum received from the accumulated insurance that is due or even money from mutual funds such as LTF and RMF is a lump sum. Making it said that the first 5 years of retirement will be the Honeymoon Period of retirement. Since there will be a large amount of money coming out Therefore, if we do not manage this final lump sum that's good enough Money may run out before we die. Therefore, having money from pension insurance will give us the exact income that is paid out to us every year, at least assured that this money. That is our exact retirement money.

  • Life coverage In the event that the insured passes away prematurely Which can specify the beneficiary as needed. In addition, benefits from life insurance policies are tax exempt.

  • Annuity insurance premium can be tax-deductible as specified by law

Annuity insurance restrictions

  • Receive a relatively low return, average at 2-3%, which may not win inflation

  • Life coverage may not be very high; therefore not suitable for people who need a high sum insured To protect the financial burden

Is it worth it? To get Annuity insurance

Worth it or not depends mainly on your financial goals. Before you buy any type of financial product You must always ask yourself first that what do you want? What is your financial goal? And your ability to take risks? As already mentioned, annuity insurance is provided for retirement planning that is suitable for those who want a fixed pension income in a certain period. As well as receiving life protection and tax deduction rights and is a less risky alternative than other alternatives. If you have needs like those mentioned annuity insurance will meet your needs.


Annuity insurance is not better or inferior to other options. It all depends on the financial goals you set. We should choose financial assets that enable us to meet and meet our financial needs as much as possible. For those who know and understand what they want Will to be able to choose the financial asset that is best for you

               

ฺBy : Nipapun Poonsateansup ,CFP® Dependent Financial Planner