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All you need to do about annuity method
What is Annuity method?
Annuity method helps in calculating the depreciation of assets in the company. The method is used to calculate If over the life of the asset (knows as investment) has a constant depreciation of the cash flow of the same is known as Annuity Method.
What are the parties involved in Annuity Method?
There is an involvement of four key parties under the annuity method:
- Contract Owner
- Insurance Carrier
What are the Advantages and Disadvantages of Annuity Method?
- Tax Deferral
- Guaranteed Payout
- Protective shield from the creditors
- Fees and costs involved in this method
- Complexion of the calculation process
- Distribution Penalties
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