Life Insurance

Life insurance refers to a specified amount of capital—the death benefit—that is paid to beneficiaries upon the death of the policyholder. There are many different forms of life insurance including term life, whole life and universal life. Term life is arguably the most basic form of life insurance and is intended to provide financial protection through income replacement in the event of the premature death of the policyholder. There are also many different uses of life insurance such as income replacement, estate planning and tax planning.

AXA Equitable Releases Innovative Variable Annuity

AXA Equitable Life Insurance Company has been an innovator in the variable annuity industry. The company was a pioneer in the area of guaranteed living benefits with the launch of the first guaranteed minimum income benefit . AXA has recently launched a new variable annuity product named "Retirement Cornerstone." Retirement Cornerstone features a "dual account platform" that provides the potential for long-term asset accumulation and growth as well as downside protection through a guaranteed...

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Annuity

Asset Accumulation

Asset

Guaranteed Living Benefit

Guaranteed Minimum Income Benefit

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Retirement Cornerstone

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Glossary:

Annuity

Asset Accumulation

Asset

Guaranteed Living Benefit

Guaranteed Minimum Income Benefit

Key Phrases:

Retirement Cornerstone

U.S. Life Insurance Industry in Stable Condition

The U.S. life insurance industry--which includes companies that provide annuity -based products--has stabilized somewhat during 2009. Conning Research predicts net after tax statutory income of $16 billion in 2009. This is despite $20 billion in capital losses for the industry in 2009. Annuities were the most painful and volatile segement for insurers, producing a $4 billion loss in the combined 2008 - 2009 period. Much of this came from losses on living benefit guarantees associated with...

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Tax Free Exchange of Annuities for Long-Term Care Policies Allowed Starting in 2010

The Pension Protection Act of 2006 created tax incentives for the creation of hybrid long-term care insurance policies. The Act also provides the basis for a tax free exchange of a life insurance or annuity contract for a long-term care policy. The exchange would be conducted through a Section 1035 exchange . Consumers and their financial advisors will be able to conduct such exchanges beginning in 2010. The details are complicated, but there is a good, in-depth article referenced below that...

Glossary:

Annuity

Insurance

Long Term Care Insurance

Pension

Section 1035 Exchange

1035 Exchange

Life Insurance

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Incentives

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Glossary:

Annuity

Insurance

Long Term Care Insurance

Pension

Section 1035 Exchange

1035 Exchange

Life Insurance

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Incentives

Life Settlement Market Shrinks in 2008

Similar to many parts of the economy, the market for life settlements took a step back in 2008 as a result of the financial crisis. The face value of life insurance policies that were exchanged through life settlement transactions in 2008 was $11.8 billion, a slight decrease from $12.2 billion in 2007. "Tighter" capital market conditions contributed to the recent advantage that buyers have had over sellers. Analysts believe that the general advantage will return to sellers as liquidity and...

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Brett Arends on Life Settlements

Wall Street Journal personal finance columnist Brett Arends wrote an excellent piece on life settlements from a consumer perspective. Arends discusses: The inefficiencies of the life settlement market. When a life settlement makes sense. What to watch out for as a potential seller of a life insurance policy. Rates of return (10-12%) for buyers and investors in the life settlement market. The top three considerations for sellers in the market. Source: Wall Street Journal Full Story

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