Annuity Current Rates, News & Information

New York Life Lands at #1 and #2 in Annuities

Posted in Annuity , Life Insurance

September 29th, 2009
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New York Life Insurance Company has made some impressive leaps and bounds in 2009′s first quarter by ranking number 1 in income annuities and number 2 in total annuity sales. The number 2 ranking in total annuity sales represents a leap from number 13 one year ago, while the company has maintained its status as number 1 in income annuities since 2006.

The good news for New York Life represents more than a victory for the company alone. It also represents a victory for the economy. It means that while we’re still in the middle of a tough recession where millions of jobs and homes have been lost, Americans are still finding the financial strength to put some money away for their retirements. Not only that; they are finding that they can somewhat trust the idea of retirement savings.

We still have a ways to go before the economy will recover. But it’s good to know that small steps in the right direction are obviously being taken by citizens. The numbers just don’t lie. For New York Life, investment annuities are up 91 percent from first quarter of 2008, while income annuities are up 76 percent.

People are slowly but surely finding the courage to take chances for their retirements. So what about you? Do you feel that the time is now to get back into the game by put some of your money into annuities?

Life with Period Certain Annuity Basics

Posted in Annuity , Life Insurance

September 25th, 2009
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Getting life insurance is very important for people with dependents, especially small children. There are different kinds of life insurance, and one of the most popular is permanent life insurance. If you get permanent life insurance, you will get back the money you put into your insurance policy in the form of an annuity. An annuity can be disbursed however you want it – either in one big lump sum, or in yearly payments. Should you choose to get your annuity on a yearly or monthly basis, you can add on the condition known as “life-with-period-certain.”

What is It?

A life-with-period-certain annuity is an annuity that is disbursed to you over multiple years. Should you die before those ten years are over, the life-with-period-certain annuity will continue to go to whoever you have designated as the contingent payee. That’s essentially your back-up beneficiary. So, the money from your permanent life insurance policy will continue to be paid out in the form an annuity, but it will go to the person you’ve designated. Once the years of the initial annuity plan contract are up, that’s the end of the annuity payments to the person you named as contingent beneficiary.

Advantages of Life with Period Certain Annuities

The best thing about the life-with-period-certain annuity plan is that you will more than likely get a higher annuity payment every time, seeing as all the money you’ve built up in your permanent life insurance policy – known as its cash-value aspect – has to be given back to you in a set period of time. By contrast, were you to get a life annuity plan, the cash value in your permanent life insurance policy would be paid out over many more years.

To learn more about life-with-period-certain annuity, permanent life insurance, annuities and any other aspect of a life insurance policy, be sure to consult with a life insurance professional.

Adding Conditions to Annuities

Posted in Annuity , Life Insurance

September 25th, 2009
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If you decided to get permanent life insurance, one of the best things about it – beyond ensuring that your loved ones will be financially secure – is that you will get back the money you put into your policy in the form an annuity. An annuity is the technical term for the payment you receive when you start tapping into the cash-value aspect of your permanent life insurance. You can add desired conditions to your annuity that will tailor it to your specific needs.

Annuity Payouts

People who hold permanent life insurance policies certainly look forward to their annuities. In most cases these annuity payments can start whenever you want them to, but most people choose to access their annuity payments once they retire. In fact, permanent life insurance is a popular strategy for retirement savings. Before you get your first annuity, you can add conditions to its disbursement. One of the most popular conditions to add to an annuity is the guaranteed payment periods. This means that if you so choose, you can get the annuity paid out every year for a set period of years – say five, or ten. These annuities will be paid even if you the policyholder die before the time period is up.

Another common condition added to annuity plans is joint life annuities. When you select this condition for your annuity, it means that your spouse or domestic partner will receive the annuity payment after you die.

There are many conditions that you can add to your annuity plan, and these conditions will vary between policies and insurance companies. It makes sense to consult with a permanent life insurance expert before you select a policy, so that you know what you’re doing, and don’t make any costly mistakes. People add conditions to their annuity plans all the time, so there will be a lot of good advice out there to listen to.

Life Annuity Facts

Posted in Annuity , Life Insurance

September 18th, 2009
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Saving for your retirement is something you need to take seriously, if you aren’t thinking about it already. The day you retire will be here before you know it, and when it comes you’re going to start enjoying your freedom – at the exact same moment that you stop getting a paycheck. Freedom is a truly wonderful thing, but freedom without money is not. So, you want to do what you can to save money and put it aside for life after retirement. One way that people save money is by putting their money into a life insurance annuity. Life insurance annuities are the result of paying monthly premiums year after year into a permanent life insurance policy.

Permanent Life

When you take out a permanent life insurance policy, you pay money every month to protect your loved ones in case you suddenly die. Grieving your loss will be hard enough as it is without having to worry about the mortgage while they’re at it. As time goes by, the money in your life insurance account accrues, and under some life insurance plans you can earn interest on this money, or invest it in the stock market of other financial markets.

Annuities

When you get older, you can start getting the money back in the form of life annuities. These annuities are you getting your principal back with interest, and every time you get a life annuity payment you are decreasing the death benefit that the beneficiary or beneficiaries that you’ve named on your life insurance policy will receive. Hopefully, your dependents will be standing on their own two feet by the time you are old enough to start getting your life annuity.

To learn more about life insurance annuity facts, be sure to consult with a life insurance annuity expert or a financial adviser.

What is a Joint Annuity?

Posted in Annuity , Life Insurance

August 17th, 2009
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If you have vowed to your beloved, “In sickness and health, to death do your part,” then you may consider the additional step of purchasing a joint annuity for the both of you. Joint annuities are a type of insurance policy. With a joint annuity, two individuals will get paid apredetermined periodic benefit throughout both of their lifetimes. Typically, the joint annuity terminates upon the death of the first spouse listed in the policy.

Joint annuities can be a great budgeting tool for those enjoying retirement. Since annuity benefits pay fixed amounts for a period of time, those planning to become retirees can invest their money into this financial instrument to ensure that their spending is paced properly. Generally, the money for joint annuities is paid into the account while the participants are still employed. The participants can opt to do either one large payment amount or other scheduled periodic payments.

Joint annuities have tax benefits to them, which make this type of investment extremely enticing to those who have substantial amounts of money to their names. When those of a higher net worth opt into joint annuities, they can use the financial instrument as a way to transfer large sums of money or reduce their taxable income amount.

When it comes to deciding on an annuity investment to help aid in retirement planning, it is important to realize that the options include one beneficiary or two. When you choose for the couple to be listed in a joint annuity, the monthly payout will be lower than if you chose a single life annuity. It is important to select your annuity structure wisely from the get go as traditionally, once you choose one type of payment plan, you cannot alter the decision and switch it to another.

What is a Lump Sum Annuity Payment?

Posted in Annuity , Life Insurance

July 7th, 2009
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When you buy life insurance, you are taking care of not only your family members and other loved ones, you are also taking care of yourself. That’s because when you purchase life insurance, you’re giving yourself peace of mind, knowing that your spouse or partner and your children will get a certain amount of money to live on after you pass away. Without you and your earning power, who would pay the mortgage? Who would pay for the college tuition? Who would pay for all the other kinds of insurance that a family needs? So getting life insurance helps you quell those fears. But getting life insurance can also result in more concrete benefits to you, the policy holder, in the form of annuities.

Life insurance annuities are a form of saving. If you put your money into an annuity, month after month, year after year, you will get it back with interest, disbursed out every month. You will get your annuity payments on a monthly basis. If you want this plan, you do not have to put money into the account every month. You can choose to set up your annuity system with a lump sum annuity payment, which is a single large payment to the insurer, who then pays interest on it. When you get your annuity payments they will therefore have made a profit for you (although you will be taxed for the profit you made on interest earnings). This way you will avoid having to make monthly payments.

Conversely, a lump sum annuity payment can also mean an insurer paying the beneficiary of the life insurance policy a single lump sum, as opposed to monthly payments. Many people prefer to have all of their money at once while others like the idea of disbursed payments.

To learn more about lump sum annuity payments, life insurance rates, and other important financial topics, be sure to consult with a financial advisor. You should consider his or her advice before making any big financial decisions.

Are Payouts Affected in a Joint / Survivor Annuity?

Posted in Annuity , Compare Life Insurance , Life Insurance , Life Insurance Quotes

April 28th, 2009
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Consumers looking for a way to diversify their investment portfolios may opt into annuities to ensure a payout during their golden years. However, the amount of payout you get may be affected by whether you opt into ajoint or survivor annuity.

Annuity Basics

Annuities are an insurance like contract where over a period of time, an investor makes payments to finance the fund. Then in return, at a set date the insurance company that manages the annuity pays back the money on a predetermined schedule. When setting up a annuity, investors can opt into three general options: Single, joint or survivor. If you want to schedule an annuity, your payout will be affect by how you set up your account. The payout degrees are as follows:

• Single Annuity – the account is set up by one person and the payout goes directly to them until they die
• Joint Annuity – Two spouses are set up with this type of investment and when one spouse dies, the payouts cease for the survivor
• Survivor Annuity – Two spouses are set up with this type of investment and when one spouse dies, the survivor will then receive half of the original payout amount

The Right Annuity

Choosing the proper type of annuity for your retirement needs can be extremely confusing. The ultimate goal is to get the best payout amount from your annuity for your money, and excluding single accounts, that amount can fluctuate based on the death of your spouse. It is impossible to predict when you or your spouse will pass away, so choosing the best annuity may require the help of a annuity expert. You may also want to look into life insurance as a way of diversifying your retirement strategy.

Annuities with Guarantees: Invest at Your Own Risk

Posted in Annuity , Compare Life Insurance , Life Insurance

April 23rd, 2009
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For retirees and nest-egg savers who have lost their 401ks or just want to make sure their financial cushion is actually secure, annuities with guarantees have recently become an enticing option. However, experts warn savers not to dive into this retirement option head-first, as it does come with a number of risks.

Risks of Annuities

For one, they are by nature more complicated than other forms of investment. But not just that; they are also filled with fees, and in general, lack transparency. Also, they are often criticized for volatile pricing – they’re either too expensive, or too cheap. And they may be susceptible to counterparty risk, which basically means that the insurance company may not be able to hold up its financial end of the bargain.

However, there are some good intentions there. In general, annuities are meant to grow principal and provide a guarantee on that principal. So over time, money grows, leaving what should be a decent amount for the nest egg.

Why are Investors Willing to Risk it?

So if annuities with guarantees are a bit shaky, why are investors taking them on? Probably because they seem to believe there are no other options. But in reality, you should know that there are other options. It’s for this reason that experts advise investors to make annuities a part of their retirement plans – alongside investments, hedges, and reserves – rather than making them the foundation or sole savings option. This way, if something happens to the annuity, all won’t be lost.

What is a Survivor Annuity?

Posted in Annuity , Compare Life Insurance , Life Insurance , Life Insurance Riders

April 23rd, 2009
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If you are in the process of planning your retirement, you are probably now considering things you never thought you would. One such question may be, “What is survivor annuity?” Survivor annuity is a type of annuity that provides participants a source of fixed income every month. Typically, spouses opt into survivor annuity plans and when one of the partners die, the other will continue to get a check in half of the fixed amount for the rest of their life.

Who Chooses Survivor Annuities?

Survivor annuities may not be for everyone, but by asking yourself ifyou think that one spouse is more than likely to outlive the other spouse for more than a decade will help to more easily decide if this type of investment strategy will work for your situation. It is is challenging to predict the life span of a human being, however some things to consider when trying to decide on a survivor annuity is:

• Age difference between the couple
• Women tend to live longer then men
• Health history of the couple
• History of longevity for the couples family

Carefully Consider Survivor Annuities

Still not sure about selecting a survivor annuity investment plan? You also need to ponder what other types of financial resources or revenue streams you have set up. If you have enough money already set aside in a good life insurance policy, a survivor annuity may not be a viable option for you.

Like all other annuities, a survivor annuity is a contract made between you and your insurance provider that guarantees you a fixed monthly return assuming your premium payments were made regularly. Survivor annuities generally offer a way to invest on a tax-deferred basis and may also include a death benefit payout. You might even want to look into life insurance riders if you decide to go with a life insurance policy instead. If you are interested in a survivor annuity strategy for you and your spouse, it is best to consult with an insurance specialist.

What is an Annuity Forfeiture?

Posted in Annuity , Life Insurance , Life Insurance Claims , Life Insurance Riders , Permanent Insurance , Term Insurance

April 20th, 2009
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Planning for retirement is crucial to ensuring that you will be able to provide yourself with a level of comfort when you are no longer working. One such investment tool many utilize to ensure a steady cash distribution is by arranging an annuity with a life insurance company. Individuals make a contract with an insurance company where the individual pays regular premiums until a set date that the annuity starts providing the policyholder with payouts. Annuities can be a good investment tool, but in some circumstances a pure life annuity can result in a forfeiture of investments.

Annuity Forfeiture Basics

In the case of an annuity, a forfeiture is when the annuitant dies earlier than anticipated, thus resulting in the annuity payments subsiding. If you invest in a pure life annuity to begin paying you at a certain age and you die only after a couple of months or years of payouts, the remaining money is lost to your heirs. With a pure life annuity, the payouts cease when the annuitant dies and the rest of the money becomes the property of the insurance company.

Preventing Annuity Forfeiture

By opting into adding a clause to your annuity policy, the chances of forfeiture can be mitigated. Riders can be added to your annuity contract stating that your benefit payout must occur for a certain period of years. For example, say you set up an annuity to pay out at 65 and add a clause to be paid for at least a total of 10 years. Even if you die at age 70, your heirs will be entitled to the additional five years of benefits as that would be part of the contract terms. If you live past the 10 years, your payout benefits will continue as scheduled per the original terms of the contract.

When it comes to establishing an annuity account for yourself, it is advisable to speak to a professional in the field. As long as you know to ask about annuity forfeitures, they can help you set up an account to help lower the risk of this occurring in the future.