Archive for April, 2007
An Annuity Protects Your Finances In Retirement
Ronaldo Patric asked:
As you approach retirement, the prospect of sitting back and relaxing with your feet on the footstool, without work beckoning on Monday morning seems particularly inviting. To enjoy your twilight years with peace of mind, you would need a steady source of income that enables you to live comfortably. Investing in an annuity provides you with that sort of financial security.
Planning for your golden years
With life expectancies increasing, you would require funds to last for at least another 10 – 20 years when you reach 65. Saving early for retirement will increase your nest egg and prevent you from having to make serious lifestyle changes to cope with insufficient funds. Healthcare payments later in life can be easily managed when you have guaranteed sums to defray the cost of caregivers.
Security for ageing women
On a balance of probabilities, women are more likely to be the main caregiver for an ill or aged spouse or relative. Women are more vulnerable as they have longer life spans and lower income levels compared to men. Often, women have to give up their jobs to care for their infirm dependants. In these instances, an annuity serves to protect both their income and personal health care needs.
Benefits to consider
Although the returns from investing in an annuity depends on your attitude to risk and how much wealth you eventually want to have, the benefits that accrue are manifold:
* Cash reserve that is safe. At its most basic level, it grants you safety in terms of your funds especially when facing the vagaries of a volatile economy.
* Moderate growth in capital. The associated interest could double that of Certificates of Deposit or CDs and you’d see your money steadily increase.
* Deferment of tax payable. Unlike cash invested in conventional schemes that are subject to withholding tax, the tax regime allows a deferment of the tax payable on any monies invested with the insurance company.
* Income for the duration of your life. Monthly payments are made from a financial plan that guarantees you lifetime income. It’s almost like receiving a salary, which, depending on the source of the funds, can be wholly excluded from tax. Although inflation deteriorates the buying power of money, there’ll still be sufficient cash for your primary needs.
* Higher payouts for those with poor health. Individuals with failing health, such as heavy smokers or those with heart disease and liver problems, can choose an option that provides them with higher annual amounts as opposed to someone who is likely to live longer.
Your financial resources should afford you a cheerful time when you have hung up your working hat. Retirement funds should not be linked to a stock market that crashed when mortgage backed securities imploded on the back of risky financial products of banks that eclipsed thrifty and prudent business practices by the bastions of commerce. By investing in an immediate annuity, you guarantee your financial security with a stable income stream paid to you consistently for the rest of your life.
Sell Structured Settlement
As you approach retirement, the prospect of sitting back and relaxing with your feet on the footstool, without work beckoning on Monday morning seems particularly inviting. To enjoy your twilight years with peace of mind, you would need a steady source of income that enables you to live comfortably. Investing in an annuity provides you with that sort of financial security.
Planning for your golden years
With life expectancies increasing, you would require funds to last for at least another 10 – 20 years when you reach 65. Saving early for retirement will increase your nest egg and prevent you from having to make serious lifestyle changes to cope with insufficient funds. Healthcare payments later in life can be easily managed when you have guaranteed sums to defray the cost of caregivers.
Security for ageing women
On a balance of probabilities, women are more likely to be the main caregiver for an ill or aged spouse or relative. Women are more vulnerable as they have longer life spans and lower income levels compared to men. Often, women have to give up their jobs to care for their infirm dependants. In these instances, an annuity serves to protect both their income and personal health care needs.
Benefits to consider
Although the returns from investing in an annuity depends on your attitude to risk and how much wealth you eventually want to have, the benefits that accrue are manifold:
* Cash reserve that is safe. At its most basic level, it grants you safety in terms of your funds especially when facing the vagaries of a volatile economy.
* Moderate growth in capital. The associated interest could double that of Certificates of Deposit or CDs and you’d see your money steadily increase.
* Deferment of tax payable. Unlike cash invested in conventional schemes that are subject to withholding tax, the tax regime allows a deferment of the tax payable on any monies invested with the insurance company.
* Income for the duration of your life. Monthly payments are made from a financial plan that guarantees you lifetime income. It’s almost like receiving a salary, which, depending on the source of the funds, can be wholly excluded from tax. Although inflation deteriorates the buying power of money, there’ll still be sufficient cash for your primary needs.
* Higher payouts for those with poor health. Individuals with failing health, such as heavy smokers or those with heart disease and liver problems, can choose an option that provides them with higher annual amounts as opposed to someone who is likely to live longer.
Your financial resources should afford you a cheerful time when you have hung up your working hat. Retirement funds should not be linked to a stock market that crashed when mortgage backed securities imploded on the back of risky financial products of banks that eclipsed thrifty and prudent business practices by the bastions of commerce. By investing in an immediate annuity, you guarantee your financial security with a stable income stream paid to you consistently for the rest of your life.
Sell Structured Settlement
Insurance Education – Different Types Of Annuities
edward hulse asked:
LIFE ANNUITIES (STRAIGHT LIFE ANNUITIES)
This is the most common type of annuity. The simple “Straight Life Annuity” provides for guaranteed periodic payments that terminate upon the death of the annuitant. Once the annuitant dies, the contract is fulfilled and no payments are made. This type of annuity does not guarantee that the annuitant will receive payments equal to the amount paid as premiums on the contract. If the annuitant lives a long time, they will recover more than all of the premiums they have paid; if they die soon after annuitization, the insurance company will only pay the benefits up until the time of death.
In the event the annuitant dies during the accumulation period (i.e. the time that payments are being made on the annuity, but prior to annuitization) proceeds will revert to the beneficiary, or if none is named, to the estate. Because this limits potential payouts, it will provide a higher return than other plans.
The Straight Life Annuity provides the maximum income per dollar of outlay.
LIFE INCOME WITH PERIOD CERTAIN
The Life Income with Period Certain guarantees that annuity payments to a beneficiary will be made for a specific number of years, even if the annuitant dies before the end of this period. Payments to the annuitant will continue as long as he or she lives.
LIFE INCOME WITH REFUND ANNUITY
The Life Income with Refund type of Annuity states that in event of the annuitant’s death, the company will pay an amount at least equal to the total dollars paid in as premiums. The company will continue to pay the guaranteed amount of monthly income for as long as the annuitant lives.
There are two types of this annuity:
Cash Refund: The Company agrees that if the annuitant dies, it will refund in cash the difference between the income that annuitant received and the amount that was paid in premiums plus interest earned.
Installment Refund: The Company agrees to continue to make payments to the beneficiary until the total of the payments made to the annuitant and to the beneficiary equals the amount the owner paid for the annuity plus the interest earned. The longer the payout is to continue after the annuitant’s death, the smaller will be the periodic payments.
? Annuities with refund options pay annuitants lower amounts of income than do comparable contracts without them. The refund option represents an extra benefit for the contract owner and an extra cost for the company.
TEMPORARY LIFE ANNUITY
The Temporary Life Annuity is a “combination” plan. Annuity payments will be made until either (a) the end of a pre-determined number of years, or (b) until the death of the annuitant, whichever comes first.
JOINT AND SURVIVOR ANNUITIES
Under this arrangement, two people are insured, usually husband and wife. Beginning on the date set in the contract, payments are paid to the annuitants. Payments are guaranteed to continue to the surviving spouse upon the other spouse’s death. Depending on the terms, the continuing payments will either be in the same amount as when both annuitants were alive, or be reduced. Obviously, the premiums are higher than those for life income annuities are since the likelihood of a long annuity payment period is greater when more than one life is covered.
http://www.myceisonline.com
Cash for Annuity
LIFE ANNUITIES (STRAIGHT LIFE ANNUITIES)
This is the most common type of annuity. The simple “Straight Life Annuity” provides for guaranteed periodic payments that terminate upon the death of the annuitant. Once the annuitant dies, the contract is fulfilled and no payments are made. This type of annuity does not guarantee that the annuitant will receive payments equal to the amount paid as premiums on the contract. If the annuitant lives a long time, they will recover more than all of the premiums they have paid; if they die soon after annuitization, the insurance company will only pay the benefits up until the time of death.
In the event the annuitant dies during the accumulation period (i.e. the time that payments are being made on the annuity, but prior to annuitization) proceeds will revert to the beneficiary, or if none is named, to the estate. Because this limits potential payouts, it will provide a higher return than other plans.
The Straight Life Annuity provides the maximum income per dollar of outlay.
LIFE INCOME WITH PERIOD CERTAIN
The Life Income with Period Certain guarantees that annuity payments to a beneficiary will be made for a specific number of years, even if the annuitant dies before the end of this period. Payments to the annuitant will continue as long as he or she lives.
LIFE INCOME WITH REFUND ANNUITY
The Life Income with Refund type of Annuity states that in event of the annuitant’s death, the company will pay an amount at least equal to the total dollars paid in as premiums. The company will continue to pay the guaranteed amount of monthly income for as long as the annuitant lives.
There are two types of this annuity:
Cash Refund: The Company agrees that if the annuitant dies, it will refund in cash the difference between the income that annuitant received and the amount that was paid in premiums plus interest earned.
Installment Refund: The Company agrees to continue to make payments to the beneficiary until the total of the payments made to the annuitant and to the beneficiary equals the amount the owner paid for the annuity plus the interest earned. The longer the payout is to continue after the annuitant’s death, the smaller will be the periodic payments.
? Annuities with refund options pay annuitants lower amounts of income than do comparable contracts without them. The refund option represents an extra benefit for the contract owner and an extra cost for the company.
TEMPORARY LIFE ANNUITY
The Temporary Life Annuity is a “combination” plan. Annuity payments will be made until either (a) the end of a pre-determined number of years, or (b) until the death of the annuitant, whichever comes first.
JOINT AND SURVIVOR ANNUITIES
Under this arrangement, two people are insured, usually husband and wife. Beginning on the date set in the contract, payments are paid to the annuitants. Payments are guaranteed to continue to the surviving spouse upon the other spouse’s death. Depending on the terms, the continuing payments will either be in the same amount as when both annuitants were alive, or be reduced. Obviously, the premiums are higher than those for life income annuities are since the likelihood of a long annuity payment period is greater when more than one life is covered.
http://www.myceisonline.com
Cash for Annuity