Sentences with phrase «annuity owner»

Living benefits can help protect variable annuity owners from running out of money in retirement.

That's because a portion of the money is allocated to investment options within the annuity, which annuity owners and their advisors can diversify according to their individual needs and risk tolerance.

The spouse of a deceased annuity owner can take the death benefit in the same manner as any other beneficiary with the same income tax liability results.

These examples provide some context as to what kind of returns indexed annuity owners might expect.

This offers annuity owners more flexibility as they can access the death benefit value (if needed) by creating a lifetime income stream.

Yet there is no shortage of articles both on the Internet and in print advising would - be annuity owners about the many pitfalls of these instruments.

In this way, many variable annuity owners were stuck with a confusing, hard - to - value investment.

If you have been thinking the indexed annuity owners have been keeping their annuities for longer and longer periods in the past few years, you are right!

The reason is that when insurance companies create an annuity, they pool the money of thousands of annuity owners, some of whom will die sooner than others.

For instance, in a similar step - transaction - doctrine issue with partial 1035 annuity exchanges and subsequent liquidations (which allowed annuity owners to get more favorable treatment in the multi-step process than could have been obtained if treated as a whole), the IRS ultimately declared in Revenue Procedure 2008 - 24 that as long as the taxpayer waited at least 12 months between the 1035 exchange and the subsequent liquidation, it would be allowed.

Because in addition to interest and return of a portion of your principal, each annuity payment effectively contains an extra little amount known as a «mortality credit» — essentially, money transferred from annuity owners who die early to those who live long lives.

Our marketing experts will provide leading edge outreach and grassroots platforms that engage annuity owners and those considering annuities to talk to those with influence and ask them to maintain unfettered access to competitive annuities and competent professionals.

While some types of annuities allow portions of the account value to be withdrawn for income needs, annuity owners typically can't withdraw the full account value in the early years of the contract without potentially paying a withdrawal charge.

Insurers are able to tell you how much you'll receive because they hire actuaries to project how many annuity owners will die each year, and the companies» investment analysts forecast investment returns.

Longevity Insurance is an annuity that doesn't begin paying out until the owner is at an advanced age and is basically a form of an annuity

Also most variable annuity owners I speak with believe that their principal is protected.

«A ruling by a Louisiana appeals court recently stated that the entire death benefit from a single premium annuity plan paid to the beneficiary named in that plan was subject to inheritance tax because it was part of the deceased annuity owner's estate,» says annuities specialist Steven Hart.

Annuitization offers annuity owners an income stream they can't outlive, but there are pitfalls.

Sen. Warren also did not provide any cost - benefit analysis between non-cash and cash incentives, or what replacing non-cash incentives would cost companies and, by extension, annuity owners.

If the annuity owner died, you may have several options to receive your inherited annuity proceeds depending on the terms of the annuity contract, your relationship to the person who died, and when the owner died.

That being said, all fixed indexed annuities share the same basic chassis, which is very simple: in periods (typically one - year) where the index declines, they protect principal and all previously credited interest from loss — the annuity owner earns zero interest.

If you elect to receive an annuity, the combined annuity payments may actually be worth more than the lump sum if the annuity owner lives a long time, essentially beating the mortality table's predictions.

Though the annuity owner gives up a chance for the highest possible growth in exchange for a partial cushion against losses, they gain the ability to stay diversified and generate potential growth.

A key feature of equity - indexed annuities is the participation rate, which is basically a limit that proscribes the extent to which the annuity owner participates in market gains.

If the annuity owner decides to cancel the annuity and access the funds early, cancellation fees can run as high as 15 % in addition to a 10 % tax penalty.

If the annuity has an 80 % participation rate, and the index to which it is linked shows a 15 % profit, the annuity owner participates in 80 % of that profit, realizing a 12 % profit.

You (the annuity owner) make a lump - sum payment or a series of premium payments to an annuity issuer (the insurance company), which will accumulate earnings at a fixed interest rate (a fixed annuity) or a variable rate determined by the growth (or losses) in investment options known as subaccounts (a variable annuity).

For example, unlike life insurance and real estate investing, there is «no step up in basis» and there is income tax exposure for the estate upon the death of the annuity owner.

When insurers set the payments annuity investors will receive, they know that some annuity owners will die sooner than others.

So in calculating the payments annuity owners will get, insurers can factor in «mortality credits,» which is insurance - speak for the money that's effectively transferred from those annuity owners who die early to those who live a long life.

However, the annuity owner also bears the risk of the sub-account.

Well, basically they're little supplements, so to speak, that insurers factor into an immediate annuity's monthly payout to reflect the fact that some annuity owners will die sooner than others.

With some types of annuities, this guaranteed income lasts throughout the annuity owner's lifetime, regardless of market performance.

If you have good reason to believe you'll die before you reach life expectancy, an annuity isn't a good choice as you'll be the one providing mortality credits to those annuity owners who go own to live long lives.

So when setting annuity payments, insurance company actuaries are able to include what are know in insurance circles as «mortality credits,» essentially money that would have gone to annuity owners who die early but that's instead transferred to those who live longer.

The idea is that the monthly payments that would have gone to the annuity owners who die early are effectively being transferred to the annuity owners who live a long life.

If the annuity owner died, you may have several options to receive your inherited annuity proceeds depending on the terms of the annuity contract, your relationship to the person who died, and when the owner died.

The annuity owner chooses the level of protection based on goals and risk tolerance.

Index - linked annuities provide the opportunity to participate in the market's growth potential by tracking a market index that the annuity owner chooses.

By paying an up - front fee, the annuity owner receives flexibility never before seen in a guaranteed fixed rate annuity.

Another feature often uniquely available to annuity owners is the step - up.

A critical factor is that once the ASD kicks in, this isn't revocable and payments must continue unless the contract is surrendered or the annuity owner or designated party (annuitant) dies.

During the accumulation phase, the account will be set up to grow cash value based upon the formula selected by the annuity owner.

(It is a good idea for annuity owners to regularly check their beneficiary designations as part of any estate plan.)

As an annuity owner, you have control over how long the annuity is invested, when you receive benefits and how often you are paid.