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.

Retirement Experts Working on 401k Plans that Allow for Test Drive of Annuities

Retirement experts are working through the Retirement Security Project in Washington to develop concepts that would increase annuity ownership within 401k plans. Concepts include providing 401k participants with the ability to test drive annuities through an "automatic trial income strategy." In other words, at retirement about half of a person's plan assets would be placed in a trial income plan that would pay out a monthly annuity income for two years. Participants would then have the ability...

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Guaranteed for Life Income Benefit Riders

Submitted by tom on Wed, 05/20/2009 - 12:49

Do you think guaranteed for life

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Charitable Gift Annuities Impacted by Financial Crisis

The financial crisis has begun to have an impact on something known as a charitable gift annuity or simply gift annuity. Tax deductible gifts to charitable organizations can be made in exchange for the promise of guaranteed, annuity-like payments from the charity to the donor. Some charities purchase insurance policies to fund the promised annuity payments while others simply rely on existing assets and the overall financial health of the organization. Not surprisingly, financial market turmoil...

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Charitable Gift Annuity

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Variable Annuities are Starting to Lose Appeal

Variable annuity sales had been surging prior to the onset of the financial crisis. As reported earlier , many customers who had purchased variable annuities with guaranteed living benefits (GLBs) two or more years ago have been well insulated from the financial storm. However, the current environment for variable annuities and living benefits is vastly different than it was even a year ago. Insurers are now increasing prices and scaling back on the richness of product features, making it a...

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Annuity

Guaranteed Living Benefit

Living Benefits

Variable Annuity

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Section 1035 Exchange

1035 Exchange

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Financial Crisis

Annuity Sales

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Annuity

Guaranteed Living Benefit

Living Benefits

Variable Annuity

Surrender Charge

Section 1035 Exchange

1035 Exchange

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Financial Crisis

Annuity Sales

MassMutual Appears to be Moving Away from Variable Annuity Marketplace

Recent decisions by MassMutual would appear to indicate that the company is becoming less interested in and committed to the variable annuity marketplace. The company has recently scaled-back on some of its variable annuity product features or riders. The departure of one of MassMutual's top annuity experts, Jerome Golden, would also seem to indicate waning interest in the space. The company also indicated that it will place renewed emphasis on distribution through career agents rather than...

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