Annuities

A split-funded annuity is a type of annuity in which a portion of the principle is used to support immediate monthly payments and the remainder is saved to fund a deferred annuity. What is one of the major disadvantages of split dollar plans? Let’s imagine you want to provide low-cost life insurance to a few […]

In court cases, plaintiffs are given structured settlements. Individuals are able to acquire annuities. If you bought or inherited the annuity, you don’t need court permission to sell it. Annuity payments are generally easier to sell than structured settlement payments. You may be able to take a modest portion of your retirement income without incurring

A temporary annuity is a supplement to your retirement income. It gradually raises your monthly payment until you reach 65 years old or die, whichever comes first. This can help you figure out how much your pension will be before and after you turn 65. What type of annuity is considered a temporary annuity? A

A variable annuity is a tax-deferred retirement vehicle that lets you choose from a variety of investments and then pays you a fixed amount of money in retirement based on the performance of those investments. A fixed annuity, on the other hand, offers a guaranteed payout. What’s wrong with variable annuities? Before you go out

A variable annuity is a hybrid product that combines investment and insurance. You invest in mutual-fund-like accounts, and earnings are tax-deferred until you remove the funds. Withdrawals, like distributions from regular IRAs, are taxed as ordinary income rather than at lower capital-gains tax rates. Is a variable annuity the same as an IRA? The most

An annuitant is a person who has the right to receive regular payments from a pension or annuity investment. The contract holder or another individual, such as a surviving spouse, can be the annuitant. Annuities are commonly thought of as income enhancements for retirees. They could be linked to a pension scheme for employees or

According to the Social Security Administration, a guy turning 65 today can expect to live until he is 84 years old. The average age of a woman is 86.6. About a third of today’s 65-year-olds will live to reach 90, with about one in seven living to be 95. Annuities entail signing a contract with

An annuity is a financial product sold by insurance firms that guarantees a consistent income stream in retirement. Investors make a one-time or a series of one-time payments, and the annuity returns a fixed amount to them in regular dividends, either immediately or later. These distributions can be used to cover recurring or critical costs.

The Annuity Commencement Date is the date on which annuity payments will start. At the time of application, the Contract Owner usually specifies the Annuity Commencement Date. What happens if the annuitant dies before the annuity start date? An annuity contract usually states that if the annuitant dies before the commencement date of the annuity,

The exclusion ratio simply refers to the percentage of an investor’s return that is tax-free. The exclusion ratio is a percentage based on the return on an original investment in dollars. Any profit that exceeds the exclusion ratio is taxed, such as capital gains tax. The exclusion ratio usually applies to non-qualified annuities. What is