Annuities

What is an annuity’s nonforfeiture value before it is annuitized? Withdrawals and surrender charges are deducted from all premiums paid, plus interest. What is the annuitization period of an annuity? The annuitization phase of an annuity is the time when the annuitant—the person who owns the annuity—begins to receive payments from the investment. Annuities are […]

Many people are intimidated by the crediting mechanisms for indexed annuities, but speaking with a knowledgeable financial advisor can alleviate some of their concerns, allowing them to consider these viable retirement savings vehicles. The concept of participation rates is actually fairly straightforward. The participation rate for an indexed annuity product is determined using a formula

An annuity is a long-term investment issued by an insurance company that is intended to protect you from outliving your income. Your purchase payments (what you contribute) are turned into recurring payments that can last a lifetime through annuitization. What are the benefits of having an annuity? One of the main advantages of an annuity

Teachers Insurance and Annuity Association of America (TIAA), 730 Third Avenue, New York, NY, 10017: TIAA Traditional is a fixed annuity product issued through these contracts by TIAA: G-1000.4 or G-1000.5/G1000 is a form series 1000.24. How do I get out of TIAA Traditional? Transfers or cash withdrawals in ten annual installments are available through

A fixed annuity guarantees a fixed sum of money for the duration of the contract. It can’t go any lower (or up). The returns on the mutual funds in which a variable annuity is invested fluctuate. Its worth may increase (or down). An instant annuity starts paying out as soon as the buyer pays the

The term “joint and survivor annuity” means “joint and survivor annuit An annuity that pays out to two people is known as a joint and survivor annuity. If either person dies, the survivor receives the same income payments for the rest of his or her life. No additional payments are provided to anyone when the

We’ve received hundreds of questions concerning the DOL Rule, its impact on annuity advisors, and what it means to operate as a fiduciary under the rule since Americans for Annuity Protection launched its AskAAP program in August (offered as a free benefit to AAP members). Do I need a Series 65 to sell a qualifying

To determine the present value of future one-dollar cash flows, the present value annuity factor is utilized. This calculation is based on the time value of money notion. The concept of time value of money states that a dollar obtained at a future date is worth less than a dollar received today. Amounts received today

Immediate annuity programs, as the name implies, allow you to start receiving a monthly or annual income as soon as you invest. The annuity payments might be made for a set period of time or for the rest of your life. You invest a lump sum amount or annual/monthly premiums in a deferred annuity for

A qualified longevity annuity contract (QLAC) is a type of delayed annuity that is funded using a qualified retirement plan or an individual retirement account investment. (IRA). A QLAC annuity guarantees monthly payments until death and is unaffected by stock market downturns. Are QLAC a good idea? If you’re worried about outliving your money, a