Benefits of using an immediate annuity calculator
Nov 11, 2020
(2 min read)
(2 min read)
Technology has made investment easier. Not only do you find, compare, and choose between different options online but you can decide on the right investment amount using an online calculator. Before you buy an annuity plan, you can use an annuity calculator to determine the investment amount to achieve your goals. You have to enter certain details such as the time of investment, rate of interest, etc.
Online calculators especially help first-time investors or those who want to invest in the best annuity plan.
Before we know how an online annuity calculator in India works, let’s know about the immediate annuity policy.
What is an immediate annuity?
You can purchase this type of policy when you make a lump sum payment. The annuity period starts a month after you make payment. They are contracts that help you save first and then generate income out of those savings.
The amount of annuity you receive depends on the amount you save and invest. Thus, if you wish to receive larger returns, you will have to invest the amount accordingly. To determine how much amount you should invest, you can use an annuity calculator.
What is an immediate annuity calculator?
This online calculator allows you to calculate the regular return, you will receive from the investment you make. Also, while investing in the best annuity plan, this calculator is useful to calculate the amount of money; you need to invest to receive a specific amount of income.
How does the immediate annuity calculator work?
To get the perfect results from this calculator, you will have to understand how it works. To use this calculator, you have to enter certain details such as your age, gender, the start date of income, and such.
Before calculating for annuity policy, decide whether you want to do it for yourself or your spouse. Also, determine whether you want to invest a particular amount or are aiming to get a specific return.
When you put the details, the calculator will estimate how much return you will receive for investing a certain amount for a specific period.
Using the annuity calculator makes it easy to determine how much amount you should invest. You can also determine beforehand if the amount of income you will receive, meets your financial goal or you will have to adjust the investment amount or period. Knowing these details before investing will keep you on point in getting the best out of your investment.
Information @ Finger Tips