Annuity Articles

There are annuities that provide a fixed rate of return where your principal investment will be held steady. This is called a fixed annuity.  Rates are usually very low but the risk of principal loss is not a factor with these annuities.  Another type of annuity is one where the ...

Before we delve into the details of fixed annuity fees, we will first talk a little bit about what exactly a fixed annuity is.  A fixed annuity is when a person deposits a set amount of money with an insurance company for the promise of a set future stream of income.  The person ...

In looking at variable annuity death benefits we should first do a review of what a variable annuity is.  A variable annuity is a contract that a person purchases from an insurance company.  The insurance company in effect promises to pay you periodic payments for the rest of your ...

If you’re considering investing in an annuity but you can’t decide between a fixed rate annuity or a variable annuity, you may be a candidate for an equity linked annuity.  Most people know this annuities by the name Equity Indexed annuities.  Equity linked annuities ...

Annuities are contracts sold by insurance companies to guarantee a steady stream of retirement income to the purchaser.  They can be a variable annuity, which means that they are invested in the stock market and the rate of return is not guaranteed.  They can be a fixed rate ...

Annuities are contracts sold by insurance companies that guarantee a lifetime income to the purchasers for a set payment.  The payment can be a single payment or a periodic payment. Variable annuities can be described as annuity contracts with variable returns. The returns are pegged to ...

A structured annuity, also known as a structured settlement or a periodic payment judgment, is an annuity or group of annuities with a very short accumulation phase funded by a lump sum payment similar to a single-pay annuity. It is typically funded by an insurance company or other third ...

In addition to providing a death benefit, annuities can be an important part of any retirement plan. Even so, there are a myriad of ways to set them up. In order to determine how best to use annuities to best fit an individual situation, it is important to know the main differences between ...

What is a 401k Annuity

The 401k – sometimes styled 401(k) – is a qualified retirement plan first offered in the United States in 1978. Although originally intended for senior level corporate executives, over time it became popular among individuals of all income ...

Many people know that annuities are tax deferred investment vehicles that allow them to accumulate returns on their money each year without having to claim taxes on the returns. This is the major benefit of a tax deferred annuity.  If you have a long period of time to build your assets ...

In order to explain joint life annuities we must first understand what an annuity is.  An annuity is a contract usually offered by an insurance company whereby they promise to pay a lifetime income to the annuity purchaser for a set initial premium.  If it is a single premium ...

Many questions and misinformation exist regarding annuities. Even annuity owners may not fully understand what type of account into which they are invested. Though modern annuity contracts can be very complex, the nuts and bolts of all annuities are similar. Regardless of exposure to annuity ...

Variable life insurance is a type of permanent life insurance. Like all permanent life insurance products, it has two parts: The death benefit, which is the amount of money paid to the beneficiary when the policyholder dies, and the built-up cash value account to which interest is credited ...

A charitable gift annuity (CGA) is a type of charitable donation known as planned giving. The charitable gift must be made to a verified non-profit 501(c)(3) charity. This type of organization is exempt from both state and federal taxes. In exchange for a one-time lump-sum premium, the donor ...

Retirement annuities are one more option an individual investor has for saving for retirement. Retirement annuities function similarly to a traditional individual retirement account in that they grow tax-deferred while the investor is able to contribute earned income. But instead of an ...

One choice for generating retirement income is to invest in a lump sum annuity, or immediate annuity. Though a lump sum can be invested and the income stream deferred, typically the income stream trigger will be pulled immediately after investing the money. The culmination of lifetime saving ...

When considering an annuity investment for a portfolio, there are some steps that should be followed to get the most out of your account. Annuity contracts have become very complex and diverse, offering a wide range of investment choices and riders to protect income, assets, and family. ...

Anyone that has walked into a bank to renew a certificate of deposit has probably had some exposure to an annuity presentation. Bankers have been pitching fixed annuities as a ‘tax deferred alternative’ to CD’s for many years now. This unfortunate situation has somewhat ...

An income annuity is an immediate annuity that provides a specified amount of income. It is a contract between the annuitant and an insurance company that is most often purchased with one lump sum, as opposed to monthly or annual contributions made over time.While most people consider an ...

Financial planners and investment advisors, along with the Internal Revenue Service, make a distinction between non-qualified annuities and qualified annuities. Investors, however, are sometimes confused as to what determines whether the funds used to purchase an annuity are non-qualified or ...