Sentences with phrase «providing mortality credits»

If you die soon after purchasing an immediate annuity, you'll receive relatively little in monthly payments or, to put it another way, you'll be the one providing those mortality credits to annuity owners who live long time.

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.

«I don't think paying 100 basis points per year for an investment portfolio that provides no mortality credits and exposes retirees to longevity risk is better than a competitively priced variable annuity.»

Not exact matches

The upshot, though, is that unless you're willing to take on more investing risk — which also means accepting the possibility of running through your money while you're still alive — it's very unlikely that you can match an immediate annuity's guarantee of lifetime payments, which includes that extra bit of income that mortality credits provide.

If you buy your income annuity at age 70 or older, the annuity companies can provide a higher payout to you; something akin to a higher rate of return because of the way these mortality credits work.

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.