Annuities are famous these days as many people would like to receive annuities from the insurance company as they can receive payment as monthly installments or they can get the annuity payment the entire money at one time as lump sum. The annuity is sold by the insurance companies and most of the people planning for the secured future use to choose annuity plan. By choosing appropriate annuity plan, they will receive huge sum as per plan in the future when they are in need or in any situation. Since future is uncertain, saving money for the future is best choice a person can make.
Some financial need from the regular need on daily basis can happen any time all of a sudden and it would be troublesome to run short money in such situation. It may be children education, medical expenses, settling the debt and many other reasons can cause sudden need for money and it would be very urgent. In such case they can sell annuity to recover the expense. This would be great help for them as they get huge amount in the right time. Some people use to set the annuity as payment that can be received as monthly settlements to get the needed amount for the monthly expenses but most of the people leave it for savings so that they can use it for urgent need as they can get huge sum in the urgent situation.
Annuity received in the time of retirement would be less than the annuity invested for the future use after the retirement as the rate of interest will be added with it annually and it will be much beneficial. That is why it is better to invest the annuity for long term rather than using it monthly expenses. You can sell a part of annuity or the complete annuity according to your need.