As people get older, they start thinking of their futures. By investing funds in an annuity plan, they make sure a definite amount to be received within coming future.

If you want to secure your future, then start investing money in an annuity plan. There are various types of annuities available in the market such as tax-deferred, fixed, variable, immediate, split, deferred and many more. But in this article, we will discuss about split annuities, their meaning, benefits and investing procedures

A split annuity can be defined as “a combination of two annuities, one immediate annuity and one deferred annuity. Immediate provides guaranteed monthly income for 5, 7, or 10 years on a tax advantaged basis. During the interim, the moneys deposited into the deferred annuity are increasing; the ultimate goal is that the value of the deferred annuity will equal the sum of dollars initially paid into the split annuity.”

An immediate annuity and a deferred annuity coalesces together to form a split annuity. The immediate annuity can be purchased in order to generate monthly income and a deferred fixed annuity to reinstate the original principal for the future time.

It is a healthy investment plan, which is tax effective. In the split annuity, the immediate annuity pays back a certain amount on a monthly basis over a particular time period. Another annuity plan can be left over in order to create income on a fixed interest basis when your monthly payment source gets completely depleted. Then you can start over the same income generating process with existing rates (interest rates) or re-examine your retirement plan as required. The main benefits of split annuity include: -

	It provides a guaranteed monthly income.
	To fund the Split Annuity, you need to pay only single premium.
	It offers aggressive interest rates, tax-deferred income and partial withdrawal options.
	It is flexible.

If you want more info on split annuities, visit the annuity experts at AnnuityForLife.com, or call at our toll-free number: 1-888-261-6237