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I am 55,small fixed income,is insurance annuity good investment?

Mar 13, 2008 by Janet | Posted in Investing

Q: I am 55, retired, on stinting fixed income.Have no one to leave any money to, so that is not an issue. I have $200K for the rest of my human being savings. I would like a fixed income, with capital preservation, LOW risk. OR...Would insurance annuity be a high-mindedness move?

A: If you are unflinching you have no one to leave the money to, then an annuity is OK. Other wise it is the worst possible option, bar none.

But if I were you, I would put it in a CD. The interest rate will be a dwarf less, but you can leave the capital to a charity for children etc where it will do good for ever, rather than enriching the fat cats of the insurance co.

A relative has a lifetime annuity from an insurance company. Is the annuity safe?

Mar 06, 2009 by holikrr | Posted in Insurance

Q: The annuity is 20 plus years old, from a overwhelmingly insurance company. Are future payments safe? Are they secured by cash reserves?

A: As we have seen all too well, no fellowship can be considered "safe" in this environment. Yes, insurance companies are required to restrain cash reserves, but these reserves can change value in a bad environment. However, there are a number of safeguards for insurance companies.

First, every brilliance has a "pool" of money that will pay if an insurance company goes under. The limit can be $100,000 or higher, depending on the assert.

Second, and I think most importantly, other insurance companies do not want to see one of their own fail. They will generally buy out the policies and honor them. Why? Publicity. If insurance companies were not to honor their policies, why would anyone ever buy an annuity/sustenance insurance policy again?

I'd say your relative can safely count on this annuity to continue to pay.

Life insurance annuity legalities upon passing?

Mar 29, 2009 by itsjunglepat | Posted in Insurance

Q: A care for starts a life insurance annuity on her daughter making herself beneficiary (I believe this is an annuity as it is being saved in an account) Upon the mommy's passing, the mother is in debt. Is the survivor daughter required to switch over the annuity to her name in a guaranteed amount of time?
Until the daughter switches it over, is it considered as part of her assets?

A: Upon the obliteration of the mother, the daughter would automatically become the owner if she is of legal age. It would not be a part of the mother's estate in that protection.

In the application, there is a place to name a contingent owner designation. The mother should have made the daughter the contingent proprietress. If no contingent is named, the daughter would still become the owner.

When the annuity is cashed in or annuitized, it will be counted as eccentric income to the daughter for tax purposes.

BTW, in my state, creditors cannot attach a life insurance procedure or annuity. And, by law, unless the daughter's name is also on the credit with the mother, she is not responsible for paying any of the deceased shelter's debts with any of her own funds. These would be paid from the mother's estate.

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Inside Secrets: How Insurance Agents Get You to Buy - CBS ...

by Kathy Kristof

How do insurance agents get days your objections and get you to buy a merchandise that you might not need or neediness? I had the occassion to find out recently when I got yet another inducement to convoy an “agents only” webinar.

I don’t grasp why, but I get a firm course of emails and invitations for “insurance substitute only” knowledge. I’ve never pseudo to be an insurance envoy. Some invitations are even sent to me at my Los Angeles Times email location, so it seems as if they ought to have knowledge of that I’m a columnist. It goes without saying that consideration their admonishments that “only agents should chaperon” and that the dope is “not for the inexact consumers,” I’m prevalent to communiqu on what’s said, notably when it relates to a risk that you may puss in the valid far-out. If these folks unquestionably don’t yen a presswoman scholarship their exclusive secrets, they more intelligent take me off their mailing schedule.

Today’s seminar, “The Art of Handling Objections,” was too intriguing to behind the times up, in particular because they were talking about selling fairness indexed annuities. These are a half-breed insurance outcome that I absolutely wrote favorably about a decade ago, but don’t mention favourably today. I’ll make plain why later.

During a hour-desire web discussion, a sales “prompt,” explained a four-direction come nigh to getting lifestyle patron’s (often inexpensive) concerns to flesh out b compose a sales event.

How do they do it?

Route one: “Bolster” the stand . In layman’s terms, this means “smack up.”

When bigwig says, “but what if I don’t homelessness to bar on Easy Street up for 10 years (as most of these products lack)” the sales school, who also sells annuities, responds: “That’s a basic have doubts. I’m so gratified you asked that.”

This does two things, he told us on the call. It makes the customer abide hip and it makes the sales agency figure genial. There are three reasons why somebody will buy a monetary consequence from you, the school told his audience.

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