Annuities And Accumulation Periods Explained

Have you ever thought what the difference between annuities and accumulation period is? Annuities and accumulation periods are two different things, which are used in different circumstances. If you don’t know the difference then you may think that these are same thing.

So, here I am going to explain the differences between them. I will also provide some information regarding annuities and accumulation periods and their importance.

What is Annuity?

An annuity is a contract between a person and a company or an insurance company. This contract helps to provide a monthly amount for a certain period of time. An annuity can be defined as a regular payment of a fixed amount of money.

Why do we need annuities?

Annuities are used by people for a number of purposes. People use annuities to provide income for their children, elderly people, or any other person who is not able to earn money on their own. Annuities are also used to provide retirement benefits to the employees.

Accumulation Period

An accumulation period is the period of time that you have to pay your annuity. It is the period of time that you have to pay your annuity after the death of your beneficiary. So, you have to pay the amount of money that you promised to pay for a certain period of time.

Conclusion:

I hope you liked this post. If you want to learn more about annuities and accumulation periods then go to the link provided below.