As the average person has been more and more required to take control of their personal finances, the annuity has been an important tool in stabilizing the portfolios of the individual investor. The annuity has historically been a great investment for those people with dependents and beneficiaries.
Annuities usually offer a great deal of investment options, but the hybrid annuity offers a special kind of flexibility to the investor who is looking for stability and return.
The hybrid annuity not only offers a great deal of choice in terms of the underwriting investments, but also in the exposure to the marketplace that the investor receives. This is often not an option with many other kinds of annuities.
What makes the hybrid annuity a hybrid is that it combines the stability of a fixed annuity with the ability to generate a return of the variable annuity. Although all annuities offer a minimum interest rate floor, the hybrid investment is sometimes able to raise the amount of return that an investor can receive over the long term without lowering that floor.
Many investors are actually finding that the hybrid annuity packages are the most convenient types of investments to garner large enough returns on which to retire. As both the age and the cost of retirement go up, people have had to expose themselves to far too much risk to garner the returns that are necessary to enjoy a non working life. The hybrid package is a great way to minimize the time that is spent dealing with market risk in order to generate an appropriate return.
Hybrid annuities also offer greater flexibility than other types of investment packages in terms of pay back structure. Although hybrids are exposed to the market, they still provide investors with the stability of structure during payback.