Annuity

An annuity comes in many forms, but a simple definition is that an annuity is a contract that converts a sum of money into a series of periodic payments for an agreed upon period of time. An annuity can be thought of as a financial vehicle that converts a pool of money into a stream of income. Annuities are most useful in addressing the financial planning needs of people in or approaching retirement. Annuities are unique in the financial world because they can provide protection against the risk or outliving one’s assets (longevity risk) by guaranteeing income payments in perpetuity or any other selected amount of time. Annuities can be viewed as a type of personal pension plan. Social Security is similar to an annuity in that money contributed over the course of one’s working years is converted into a series of periodic payments that provide income during retirement.

Fixed Annuity Sales Rise to $27.8 Billion

Sales of fixed annuities in the United States were $27.8 billion during the second quarter of 2009. This represented an increase of 10% from the same period a year earlier, but a decrease of 20% from the previous record setting quarter. New York Life was the sales leader with $2.85 billion in sales. Aviva , Allianz and MetLife also posted strong sales. Source: Investment News Full Story

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Sheryl Garrett is the founder of the Garrett Planning Network.

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Bequest Motive and Annuity Purchases

Submitted by tom on Tue, 09/01/2009 - 11:00

This discussion thread is a continuation of a frequently asked question that can be found here: http://www.annuitydigest.com/faq/what-happens-if-i-die-5-years-9-year-annuity-can-my-heirs-still-receive-principal

The question is as follows: "What happens if I die 5 years into a 9 year annuity? Can my heirs still receive the principal?"

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What happens if I die 5 years into a 9 year annuity? Can my heirs still receive the principal?

The question basically deals with the issues of revocability and

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Guaranteed Living Benefit

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Guaranteed Living Benefit

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NAIC Proposes More Stringent Rules for Annuity Sales

The National Association of Insurance Commissioners (NAIC) has proposed amendments to the regulatory framework that governs annuity sales. The NAIC Suitability in Annuity Transactions Model Regulation is the existing framework. The NAIC is proposing more stringent suitability guidelines for the sale of all types of annuities--including fixed annuities. The amendments would place insurance agents who sell fixed annuities under the same suitability guidelines that apply to financial advisors who...

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