How do annuities from Nationwide work?


Quick Answer

Nationwide’s annuities allow clients to choose their investment plans, decide when to begin receiving payments and select their preferred rate of return. The annuities are designed to protect clients from the risk of outliving their income, according to Nationwide.

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Full Answer

The annuities are so flexible that investors can choose between making a lump sum investment and investing over a specified time frame, according to Nationwide. Also, investors can decide whether to opt for the fixed indexed or the variable rate of return depending on their investment plan and needs.

Nationwide offers annuities whose features correspond with the particular needs of clients. For instance, a variable annuity enables investors to choose investments and make gains based on their performance. Customers should read the prospectus and consider the involved risks, the investment objectives and all charges before buying the annuity, advises Nationwide.

The immediate annuity is suitable for investors who intend to make a lump sum pay and start receiving payments immediately. Nationwide converts the lump sum to a regular income, and it is irrevocable after the first payment. In some cases, however, an investor can access the funds, though with certain restrictions. The other annuities offered by the company are fixed and fixed indexed, states Nationwide.

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