Annuities

During a depressed market, a GMWB rider preserves your annuity’s maximum value, commonly known as the “benefit base” or “high-water mark,” while allowing the underlying investments to increase. A GMWB shifts market and longevity risk from the annuity owner to the insurance firm underwriting the guarantee in this way. How is a benefit base the […]

Riders for living and death benefits are optional add-ons to annuity contracts that you can purchase for a charge. A living benefit rider ensures that the annuitant receives a payout while he or she is still alive. Beneficiaries are protected by a death benefit rider if the annuity’s value drops. Not all riders are created

A buffer annuity is a variable annuity that resembles an indexed annuity in several ways. Indexed annuities track the performance of a market index, allowing investors to share in some of the gains. These products usually provide some loss protection and set a limit on the amount of money you can make over a set

A multi-year guaranteed annuity, or MYGA, is a fixed annuity that guarantees a fixed interest rate for a set length of time, often three to ten years. A MYGA is suited for someone approaching retirement who seeks tax deferral and investment return assurance. How does a guaranteed annuity work? On the investor’s contributions, fixed annuities

To help defined benefit pension schemes reach their de-risking goals, Scottish Widows offers custom bulk annuity options. A bulk annuity is an insurance policy purchased by pension scheme trustees to better secure members’ benefits by eliminating longevity, investment, interest rate, and inflation risks associated with defined benefit pension schemes, either as a scheme asset (a

The calculation of the investment return credited to your account is one aspect of indexed annuities that is sometimes misunderstood. It’s crucial to understand how the index is tracked, as well as how much of the index return is credited to you, in order to figure out how the insurance company calculates the return. Tracking

When an annuitant dies before collecting the premiums they paid, a cash refund annuity is repaid to the beneficiary. Payments to the beneficiary may continue or cease when the annuitant dies, depending on the type of annuity. Do you get your money back with an annuity? In the end, annuities should only be a small

Orman predicts that “we will come to another financial hard period in the market” and that interest rates will remain low for a long time. So, if you’re seeking for a steady stream of income, an income annuity would be a good option, she says. They’re simply a monthly payout from an insurance company that

State insurance commissioners oversee fixed annuities. Check with them to make sure your insurance broker is licensed to sell insurance in your state, and see whether your state has a guaranty association that can provide some protection if an insurance company doing business in your state fails. What are annuity guarantees backed by? Nonprofit guaranty

Optional payouts for annuities include: Which annuity payout option is best? Because the monthly payment is based solely on the annuitant’s life, the life option often delivers the greatest payout. This option provides a lifetime income stream, which is a good way to avoid outliving your retirement income. What is an annuity form of payment?