ICDL-IT The world is full of uncertainties, indeed! This is the reality that everybody cannot deny. That is why many people are trying to invest on something they thought will be beneficial in the near future. One of these is annuity investments in which an individual agrees with an insurance company to make equal payments for a specified period wherein the latter will pay back the money invested by the former with a remarkable increase aside from the additional benefits such as annuity loan.
Foremost, in an annuity investment, the money allocated for this becomes tax free and certainly has the opportunity to grow as time passes by. The earnings in an annuity are tax-free by nature thus high returns are expected in the future. Generally, as much as half of the amount invested plus the corresponding accumulated interest will be received through annuity loan anytime soon depending on the investor's payment history as well as the investment scheme itself without paying unnecessary charges.
Access Usually, annuity loans take five years to be settled unless stipulated otherwise within the clause. But it's good to note that some insurance companies present to their valued investors an extension on the repayment scheme for loans intended to purchase residential property, of course upon considering the investor's capacity. Typically, the terms maybe extended up to twenty years. But it's not always a bed of roses. There are also disadvantages attached with this annuity loan.
For one, failure to pay the money on time can be very damaging. Such amount will be treated as withdrawal. Worse, the interest rate keeps on accumulating on the outstanding loan balance once you cannot fulfil your obligation to pay back the amount loaned including the interest, loan fees, and due taxes if there's any. Unpaid loans have tremendous impact on your annuity account. Earnings potential of your annuity will be lessened.
ICDL-PowerP Now if you consider applying for an annuity loan, just make sure that you'll be able to pay it on time, otherwise you will suffer the consequences. You will be greatly benefited with annuity loans if it's carefully planned and properly utilized, but it's very detrimental too if you know what I mean. Therefore, take time in doing so.
Foremost, in an annuity investment, the money allocated for this becomes tax free and certainly has the opportunity to grow as time passes by. The earnings in an annuity are tax-free by nature thus high returns are expected in the future. Generally, as much as half of the amount invested plus the corresponding accumulated interest will be received through annuity loan anytime soon depending on the investor's payment history as well as the investment scheme itself without paying unnecessary charges.
Access Usually, annuity loans take five years to be settled unless stipulated otherwise within the clause. But it's good to note that some insurance companies present to their valued investors an extension on the repayment scheme for loans intended to purchase residential property, of course upon considering the investor's capacity. Typically, the terms maybe extended up to twenty years. But it's not always a bed of roses. There are also disadvantages attached with this annuity loan.
For one, failure to pay the money on time can be very damaging. Such amount will be treated as withdrawal. Worse, the interest rate keeps on accumulating on the outstanding loan balance once you cannot fulfil your obligation to pay back the amount loaned including the interest, loan fees, and due taxes if there's any. Unpaid loans have tremendous impact on your annuity account. Earnings potential of your annuity will be lessened.
ICDL-PowerP Now if you consider applying for an annuity loan, just make sure that you'll be able to pay it on time, otherwise you will suffer the consequences. You will be greatly benefited with annuity loans if it's carefully planned and properly utilized, but it's very detrimental too if you know what I mean. Therefore, take time in doing so.
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