Stretch Annuity
An annuity option where tax-deferred allowances are passed on to the beneficiaries, offering the beneficiaries more flexibility and control over maintaining the investment. Therefore, the beneficiary has less restraints on wealth transfer, and he or she is able to receive a larger sum of benefits stretched over a longer period of time. Investopedia Says:
Legacy annuities or stretch annuities are not offered by many insurers, unfortunately. This type of annuity is very advantageous because the beneficiary isn't burdened with paying a huge tax bill on his or her gains. This often can be stressful for a family that has just dealt with the loss of a loved one. Related Terms:
Annuitant
Annuity
Annuity Contract
Beneficiary
Deferred Annuity
Fixed Annuity
Life Annuity
Life Insurance
Pension Maximization
Variable Annuity |