There are two ways
to receive your annuity payments.
One method is through an annuity due. This means that you will receive your payment at the beginning of each period. The period can be monthly, quarterly, annually, etc.
Why is it called due?
This refers to the payment being made immediately (due) as opposed to the end of the period. (Compare with ordinary annuity.)
To be simple about it: When you put some money into your bank in return for interest, the interest normally occurs at the end of the period. However, with a due annuity, you can receive the payment at the beginning instead.
This may have its advantage if you cannot wait for the end of the quarter, year, etc., for your payment.
You will usually receive less interest by having the payment up front. So it depends on your specific needs to determine if this is the most beneficial for you.
What Are Your Options?
Ask our annuities and retirement financial advisor for help. She will be glad to show you the options and provide you with some examples and quotes...
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