Insurance policy is nothing but a contract to insure you for some capital, and the insurance contract always provide the risk coverage for the one who bought the insurance. The one who purchased the policy will be promised to pay some amount of money as premium to compensate for a situation of unexpected loss. The reason for going with insurance scheme is to get relief from stress in the retirement life, which is very much important to manage their financial needs. The common types in insurance field are one for risk coverage and other for savings. The savings scheme helps them in getting some amount regularly to manage all their expenses, and the risk coverage will benefit your nominee if there is unexpected loss of the insure.

Most popular insurance policy that you can find out here in current generation is savings one, and the reason for this is they are saving money, whereas they insure themselves for some medical conditions. The life insurance policies that have shorter life time contracts are also popular as the number of years they lock their amount is reduced so that they can use the lump sum amount for some useful purposes. The savings scheme in life insurance policies has made it a good competitor among the other financial sectors and saving schemes.

Deferred Annuity

The types of annuity includes immediate or deferred, whereas the deferred annuity is otherwise known as delayed annuity. The deferred annuity falls into two categories, accumulation phase and income phase. The accumulation phase is also known as savings one which requires the one who purchased the insurance policy to pay some premium either in months or per year, or in one single settlement. The income phase is you need to lock some amount of money for large number of years and after the specified number of years you will get started to receive the payments from insurance company.

The main advantage in insurance policy is you can use it for tax exemption, whereas it also has a disadvantage in which the one from whom you get the insurance will be given a commission fee of about 10% by the insurance company. You must know about the surrender period and its number of years so that you must not be charged any penalty fee. This amount is not just intended for your retirement life it can also be used for the future of your children. So thus you can simply invest your money in deferred annuity without any ado. Now, safeguard yourself and your family from health hazards and have stable financial life with no specific money burden and personal worries