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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.

First Choice

Glossary: 
Annuity
Variable Annuity
Annuity Product Types: 
Variable Annuity
Company Offering: 
First Investors
Surrender Fees: 
8%
7%
6%
5%
4%
3%
2%
1%
0%
Variable Annuity Fields
Minimum Premium Payment: 
5000
Maximum Premium Payment: 
500000
Minimum Additional Premium Payment: 
200
Minimum Total Fees and Expenses: 
2%
Maximum Total Fees and Expenses: 
2%
Minimum Mortality and Expense Risk Charge “M&E Fee”: 
1%
Maximum Mortality and Expense Risk Charge “M&E Fee”: 
1%
Administrative and Contract Maintenance Expense: 
0%
Administrative Fee: 
$50
Minimum Investment Management Fee: 
1%
Maximum Investment Management Fee: 
1%
Total Number of Investment Options: 
11
Maximum Number of Concurrent Investment Options: 
11
Free Withdrawals: 
Yes
Free Withdrawal Limit: 
10
Guaranteed Death Benefit: 
Available
Commissions (Maximum): 
4%
Key Phrases:
Glossary: 
Annuity
Variable Annuity
Annuity Product Types: 
Variable Annuity

Tax Tamer I

Annuity Product Types: 
Variable Annuity
Glossary: 
Annuity
Variable Annuity
Company Offering: 
First Investors
Variable Annuity Fields
Minimum Additional Premium Payment: 
200
Minimum Total Fees and Expenses: 
2%
Maximum Total Fees and Expenses: 
2%
Minimum Mortality and Expense Risk Charge “M&E Fee”: 
1%
Maximum Mortality and Expense Risk Charge “M&E Fee”: 
1%
Administrative and Contract Maintenance Expense: 
0%
Administrative Fee: 
$0
Minimum Investment Management Fee: 
1%
Maximum Investment Management Fee: 
1%
Total Number of Investment Options: 
11
Maximum Number of Concurrent Investment Options: 
5
Free Withdrawals: 
Yes
Free Withdrawal Limit: 
100
Guaranteed Death Benefit: 
Available
Key Phrases:
Glossary: 
Annuity
Variable Annuity
Annuity Product Types: 
Variable Annuity

Low Consumer Awareness

Submitted by Anonymous on

A story from the UK confirms that consumer awareness of annuities is quite possibly the lowest of any consumer financial services product.

A survey from UK insurer Standard Life indicates that almost half of UK residents do not know what an annuity is.

Forums: 
Annuity Pros & Cons
Key Phrases: 
Consumer Awareness
Glossary: 
Annuity
Annuitization
Consumer
Insurer
Key Phrases:
Forums: 
Annuity Pros & Cons
Glossary: 
Annuity
Annuitization
Consumer
Insurer
Key Phrases: 
Consumer Awareness

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