Annuity Analysis
What Does Annuity Analysis Mean?
An annuity analysis refers to the essential information one needs to understand before purchasing an annuity. This can include details such as the payout schedule, the interest rate if a portion of the annuity is invested, and even the potential impact of inflation on the annuity.
Insuranceopedia Explains Annuity Analysis
If a person intends to buy an annuity, they will be presented with various options, each involving multiple variables. From the payment schedule to potential interest rates that could increase the eventual payout, the applicant must carefully consider several factors, particularly since annuities are often relied upon as a source of post-retirement income. One way to evaluate these options is through an annuity analysis. This analysis will provide the exact (or reasonably approximate, as interest rates may change) figures needed to make an informed decision.
Potential annuitants can receive an annuity analysis from their broker.