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PTP Insurance
Agents of Naperville, IL, an independent insurance agency
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What is an annuity?
 An
annuity is a contract between a financial institution and a person
(the annuitant) who receives benefits from the annuity. There
are two phases to an annuity contract;
- funding phase. The annuitant
funds (makes payments) into the annuity. This phase can be anywhere
from a one time, single payment to a specified period of time
that can last for years. For example, one may choose to fund
an annuity until retirement.
- annuity or payout phase. The
financial institution makes payments to the annuitant. This phase
can take on a variety of forms depending on how the contract
is written - payments for a specified period, till death, till
death of both annuitants in the event of a joint annuity, and
so on. The amount of the payout is determined by the amount funded
and the type of payout phase agreed upon.
What are the different types
of annuities?
- Fixed annuities, which are
usually offered by insurance companies, have provisions that
make payments in fixed amounts or in amounts that increase by
a fixed percentage. This, in essence, is an insurance product.
- Variable annuities are an investment
product typically offered by a stock broker. Because the underlying
investments are usually bond and equity mutual funds, the account
value is subject to variation. In other words, there is more
risk involved with a variable annuity. Also payment amounts may
vary according to the investment performance of the account.
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People
to People Insurance Services Inc. - 1240 Iroquois, Naperville, IL, DuPage County - Serving Chicagoland (630) 355-2355 |
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Naperville Illinois personal and commercial independent insurance agents, PTP Insurance Agency, serves clients throughout
the metropolitan Chicagoland area which includes Cook County, DuPage County, Kane County, Kendall County and Will County;
including, but not limited to, Naperville, Bolingbrook, Plainfield, Aurora, Batavia, Barrington, Berwyn,
Bedford Park, Bloomingdale, Brookfield, Burbank, Burr Ridge, Carol Stream, Chicago, Clarendon Hills, Countryside,
Darien, Downers Grove, Elgin, Elmhurst Glen Ellyn, Glendale Heights, Hickory Hills, Hoffman Estates, LaGrange,
LaGrange Park, Lemont, Lisle, Lockport, Lombard, Lyons, Mokena, Montgomery, Oak Brook, Oswego, Romeoville,
St Charles, Schaumburg, Shorewood, Sycamore, Warrenville,West Chicago, Westmont, Woodridge and Yorkville.
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