Annuities are one of the most important financial tools for retirement. The annuities are highly beneficial financial products for the people who want to live financially secured life in retirement. Annuities are very popular financial tool for the American senior citizens.

Annuities offer several settlement options. Annuitization is the most popular annuity settlement option. It involves taking payments over a time frame that you select, which may include the rest of your life. After annuitization, you receive payments (monthly, semi-annually, and annually) in return of buying annuity from the annuity insurance company. Annuitization options usually include: Lifetime Income, Period Certain, and Period Certain Plus Life.

Lifetime Income: Some of you may not find it a good deal after knowing the way it works. In lifetime income settlement, let's say you have invested $100,000 in an annuity. The insurance company will settle your income settlement after making calculation according to you age and gender. It will pay you $1,500 a month for as long as you live. Suppose you get $1,500 the first month, $1,500 the next month, and $1,500 the following month, and then you meet an accidental death. You just get $4,500 and rest you lose. It's like betting with the insurance company and losing to the latter.

Period Certain: This is the second payment settlement option. This option allows you take your money out over a period of 5, 10, 15, or 20 years. The insurance company guarantees to pay out all your money (plus interest) over that period. This option will also allow you choosing your beneficiary, if you die in between. Suppose you do not live to the end of the period specified in the settlement, your beneficiary will get the remaining money in your annuity over the rest of the period. So, live or die, you or somebody on your behalf will get all your money back.

Period Certain Plus Life: In the ‘Period Certain Plus Life' payment settlement option, the insurance company guarantees to pay you a check each month for a certain period of time, plus, if you live beyond that period. You'll receive monthly income even if you live to be 150 years old.

For more info on annuitization, call toll-free at 1-888-261-6237