Sentences with phrase «life annuities because»

Moreover, the inflation - adjusted income flows, at least initially and for several years thereafter, will likely be lower than those of a life annuity because of the latter's «mortality credit,» the sharing of mortality gains among survivors in the annuity purchase pool.

Not exact matches

This works because the fee - only financial planner is compensated by you directly, and not by a third - party annuity, life insurance, or mutual fund company.

Because there is no living benefit guarantee, she said she finds the product easier to explain than variable annuities with living benefit guarantees.

In a few rare cases, an annuity may be justified because it offers guarantees, like living benefits or a death benefit.

New low - cost deferred variable annuities «deserve to get more respect,» insisted Pfau, but he singled out the immediate annuity — also called an income annuity or a life annuity — as packed with the most potential because it offers «a ton of benefits to consumers.»

Advisors are upset because a couple of big variable annuity carriers — Prudential and Jackson National — are suspending sales of, or deposits into, certain variable annuities, such as those offering guaranteed living benefits.

Hegna thinks advisors will start selling more of these products in lieu of variable annuities with living benefit guarantees, «because the guaranteed income that people can get from variable annuities can't compete with what they can get from a deferred income annuity.»

But he singles out the immediate annuity — also called an income annuity or a life annuity — as packed with the most potential because it offers «a ton of benefits to consumers.»

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.

Life annuities are ways to hedge longevity risk because they provide guaranteed monthly income for as long as the retiree lives.

Because the peak was so short - lived, insurers held off on increasing annuity rates in March.

Because variable life subaccounts fluctuate with changes in market conditions, the principal may be worth more or less than the original amount invested when the annuity is surrendered.

Some have expressed reservations that, in transitioning from pensions to annuity payouts, they stand to lose the security of their payments because annuities are not secured by a federal authority like the FDIC, and will have to forgo cost - of - living adjustments.

This works because annuities and life insurance are essentially the same product with just the buyer and seller switched.

Life insurance companies are harmed by low rates because they need high income from their investments to pay future obligations to policy holders and those receiving annuities.

Deferred annuities (fixed or variable) may be considered the opposite of life insurance because annuities can help you protect against... More

I know people have been hesitant to purchase annuities because of the current low interest rates and that they will be locked in for life.

Now annuities arent evil, but I think alot of people get in to them at the wrong time and under the wrong circumstances because of sales pressure from the insurance company to buy them (especially as part of a Life Insurance Policy).

Joint life annuities produce the lowest payments because the combined lifespan of both spouses is greater than for a single spouse.

With life and annuity coverages, outside of life settlements, this risk to the insurance companies is small, because the actuaries expect the potential losses from the hidden knowledge of the insureds, and build it into pricing.

They're one - part insurance, delivering guaranteed lifetime income when an optional living benefit rider is added to the annuity, and one - part accumulation potential, because a portion of the owner's purchase payments is allocated to a mix of diversified investments that can provide long - term growth to help maximize future retirement income.

But now at 104 years old, you are trying to live off a sixth of what you needed when you began your retirement.The only real guarantee of an annuity is a diminishing lifestyle because of inflation.

Income annuities may be appropriate for investors in or near retirement because they offer guaranteed3 income for life or a set period of time.

This is because an annuity can provide a guaranteed stream of ongoing, lifetime income for as long as a person lives.

With an immediate need annuity, you don't have to worry about outliving your money because the monthly payments continue for the length of your life.

One reason for this is because annuities can provide the ability to obtain a guaranteed lifetime income stream — regardless of how long a person lives.

Even taking a loan from an annuity, unlike a loan from a cash value life insurance policy, is a taxable event because it considered either an early withdrawal of cash OR an additional withdrawal over the regular monthly payment.

The life insurance industry has brainwashed everyone into believing that VUL (and annuities) will always beat everything else because of all of the wonderful tax advantages.

Another option is a deferred - income annuity, also called longevity insurance: You get heftier payments because you pick a date down the road to begin receiving them (see Plan for a Long Life When Saving for Retirement).

Here's the shortest bottom line on all forms of annuities and all forms of whole life insurance: If you work in the life insurance business, either as an agent or an employee of a life company, or hold life insurance company stock; then annuities and whole life insurance are the greatest invention since the wheel (because they pay by far the most in immediate commissions of any financial product available today, making them by far the most profitable part of the life insurance company business model).

The reason they call them annuities, is because they used to be called life insurance policies and we all know what rip offs those were.

Once the need for quick commission bucks stops, because they've graduated out of that failing business model, the need to hard - sell American Funds immediately and permanently goes away too (ditto with having to hard - sell life insurance company products like whole life and annuities).

Because the life annuity is subject to inflation risk and is illiquid, and because household needs and preferences are so diverse and critical, the governmental stance toward this issue should be one of mild encouragement of and education about life annBecause the life annuity is subject to inflation risk and is illiquid, and because household needs and preferences are so diverse and critical, the governmental stance toward this issue should be one of mild encouragement of and education about life annbecause household needs and preferences are so diverse and critical, the governmental stance toward this issue should be one of mild encouragement of and education about life annuities.

If things really did get that bad, then most all life insurance companies would be belly up, they won't be paying at all; and so your annuity would be even more worthless than the CHIM, because you could still sell CHIM shares for pennies on the dollar.

Also, because lifetime income stream annuity payouts are based on your life expectancy, your payouts will increase because you are older each year.

I say «more» because you and your wife will already be eligible to collect Social Security, which is itself a type of annuity, indeed, one designed to automatically boost its payments each year to keep pace with inflation (although if the inflation benchmark used by Social Security doesn't rise, neither will payments, witness the fact that Social Security recipients won't receive a cost - of - living increase in 2016).

[12] And to further complicate matters, there was another surprise for the Integration Group and Canada Life, because the marketplace for annuities shut down, and annuities were not available for those who had chosen to stay with Canada Life's Pension Plan.

22 The right under sections 1 and 3 to equal treatment with respect to services and to contract on equal terms, without discrimination because of age, sex, marital status, family status or disability, is not infringed where a contract of automobile, life, accident or sickness or disability insurance or a contract of group insurance between an insurer and an association or person other than an employer, or a life annuity, differentiates or makes a distinction, exclusion or preference on reasonable and bona fide grounds because of age, sex, marital status, family status or disability.

However, because the annuity has to last longer (beyond the first death) the monthly income is considerably lower then those offered through a single life annuity.

This is because a larger portion of the cost of the contract would be allocable to death benefits if, after the required beginning date and before the annuity starting date, the participant were able to replace a designated beneficiary who has died (or to replace a designated beneficiary who has a short life expectancy with one who has a longer life expectancy).

Before we consider the individual annuities and life insurance policies, we first want to discuss business insurance because this might be something that catches your eye.

Annuities provide a stream of payments and are generally classified as insurance because they are issued by insurance companies, are regulated as insurance, and require the same kinds of actuarial and investment management expertise that life insurance requires.

Annuities are often used as a retirement planning tool primarily because they can allow you to turn a lump sum of money into a steady income stream for a set number of years, or even the rest of your life.

To steal the words of Jeff Guo, writer for the Washington Post: «If people irrationally fear annuities because they seem like a gamble on one's own life, history suggests that they irrationally loved tontines because they see tontines as a gamble on other people's lives.»

The price of the combination policy would also be relatively insensitive to actual long - term care benefit payments, because of the greater importance of the life annuity payments.

Because you won't be receiving payments for life (as with the life option), payments are higher, but you run the risk that your annuity payments will run out before you die.

Avoiding Tax Trap in the Exchange The very common reason why many policyholders would opt to change their old annuity policy and old life insurance policy in exchange to a new annuity policy and new annuity policy is mainly because a new policy is most likely will perform much better compared to the old policies since nowadays there are already improvements when it comes to mortality which will provide a lower insurance cost, a lesser administration expense on the policy which will provide lower cost, improvements in the said underwriting with lower cost, improvements in the health of the insured which will trigger lower cost, improvements in interest crediting which will perhaps provide higher rates of interest as well as the interest linked in an index and to some cases, a worsened health which may cause higher than the usual annuity payments.

The disadvantage of such an annuity is that the election is irrevocable and, because of inflation, a guaranteed income for life is not the same thing as guaranteeing a comfortable income for life.

• Retirement Annuities — Because people are living so much longer today than they did in the past, a big concern on the minds of retirees is running out of money when they still need it.

This is because an annuity can provide a guaranteed stream of ongoing, lifetime income for as long as a person lives.