How life insurance and annuities can complement each other Why some beneficiaries choose annuities As we noted in the beginning, life insurance and annuities are closely related: they both rely on actuarial science, the discipline that applies the mathematics of probability and statistics to assess financial risk. A life insurance policy provides protection for the risk of early death by providing an income tax-free death benefit to replace income you would have otherwise earned to care for your family. That's widely understood – but what do annuities help provide protection for? By providing monthly payments that last your entire life, an annuity can help protect you from the risk of...
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Archive for the ‘Annuity and Life Insurance’ Category A client of mine bought a fixed rate annuity a few years ago. She was told by the agent that it’s just like a savings account, only with a higher interest rate of 3%. Recently, we took the money out in favor of a better investment, and boy was she in for a shock! There was a $17k surrender charge and nearly $3.6k in tax withholdings. All the interest she supposedly earned in the annuity went to the surrender charges, and now she has to pay income taxes on that interest! Here is why a fixed rate annuity is nothing like a savings account. 1. A savings account is FDIC guaranteed, in other words, it has the full faith and...
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Over the past year, many sectors in the economy have been significantly impacted by COVID-19. Some will recover, some will adapt, and some will not return. For the U.S. life and annuity sector, the COVID-19 pandemic is rapidly forcing transformative change. Having faced flat to declining sales for over a decade, the pandemic is now accelerating sector adaptation at an unprecedented rate. Electronic application submissions are up 20% year-over-year, and e-policy deliveries by 52% year-over-year, according to recent insight from iPipeline. At Ensight, we have seen a dramatic shift towards the virtual sales experience with growth of 155% in just the last three months. This agile response to...
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Great-West closes sale of insurance and annuity business Great-West Life & Annuity Insurance Company (GWL&A) is announcing that it has completed the sale through reinsurance of substantially all of its individual life insurance and annuity business to Protective Life Insurance Company, the primary subsidiary of Protective Life Corporation (Protective). The sale was previously announced on January 24, 2019. The closing was effective June 1, 2019. The business transferred includes bank-owned and corporate-owned life insurance, single premium life insurance, individual annuities and closed block life insurance and annuities. GWL&A will retain a small block of participating life...
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Want to Convert Your Life Insurance to an Annuity? What You Need to Know. If you want to convert your life insurance policy to an annuity—or are thinking about it—there are some key things to take into consideration. Tom will retire in a few years. Decades ago, he opened a life insurance policy to provide security for his young family. His children are grown now and financially secure. He continues to pay the insurance premium but feels the policy is more than he needs. He’s considering transferring the policy to an annuity to provide a stream of income for his retirement. But he knows annuities can be complicated—mostly because there are different types of annuities with varying conditions...
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Nonresident Life (Including Annuities & Variable Contracts) Agent License 8-14 Life (Including Annuities & Variable Contracts) Agent License Common Use(s) of License: An individual representing an insurer as to life insurance and annuity contracts, including agents appointed to transact life insurance, fixed-dollar annuity contracts, or variable contracts by the same insurer. Annuity contracts, including, but not limited to, fixed or variable annuity contracts; the granting of endowment benefits, additional benefits in event of death or dismemberment by accident or accidental means, additional benefits in event of the insured’s disability; and optional modes of settlement of...
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LIC launches Jeevan Akshay-VII annuity plan; check out details Life Insurance Corporation of India has launched its new Jeevan Akshay- VII annuity plan with further enhancements and changes Life Insurance Corporation of India has launched its new Jeevan Akshay- VII annuity plan with further enhancements and changes. The annuity plan, which is single premium, is non-linked and non-participating in nature. Since Jeevan Akshay-VII is an immediate annuity plan, it will start paying annuity or pension to the policyholder on annuity age. "The policyholders have an option to choose a type of annuity from 10 available options on payment of a lump sum amount," LIC said on Monday. The options include...
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When you’re building a financial plan and preparing for retirement, annuities are likely to be one of many considerations. One question people frequently ask: is an annuity an investment or an insurance policy? To be clear: Annuities are not investments, they are long-term policy contracts between you and an insurance company. However, some annuities have investment-like qualities, which is what can lead to some confusion. Typically, annuities that have investment-like characteristics are used when you’re saving for retirement. Annuities that are like insurance policies are used to provide guaranteed income that you can’t outlive in retirement. Here’s what you need to know about both....
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