Annuities are a likable concept as people more often than not, diver a particular portion of their savings to an annuity just to attain some kind of financial security and peace of mind which can be promised by the guaranteed income that an annuity brings. However, the catch is that annuities are confusing. Choosing one amongst the many options and choosing one that would suit your needs and requirements perfectly is difficult.

For the purpose of retirement, one can choose an immediate “cash installment refund” annuity which would ensure that when an investor dies, any principal that is left to be paid will go out to the heirs mostly. This kind of an annuity from American National offers a monthly income of $924.43 when the percentage paid on investment is 5.55% and the total income that one would receive by the age of 85 would be $277,329. Penn Mutual also offers this annuity and provides a monthly income of $918.31 when the percentage paid on investment is 5.51% and the total income that one would receive by the age of 85 would be $275,493.

The kind of annuities which are mostly preferred by people who are planning for retirement would be the immediate annuities or the longevity insurance. The latter is best offered by the companies of Foresters, Mutual of Omaha, and Lincoln National amongst many other available options. The fundamental principle while choosing annuity would be to go for the simpler options which are also usually cheaper.