Insurance Premiums

An annuity is a contract in which an insurance company makes
a series of income payments at regular intervals in return for
a premium or premiums you have paid. Annuities are most
often bought for future retirement income. Only an annuity
can pay an income that can be guaranteed to last as long as you
live.

Term Life Insurance Policy The word annuity is a Latin word. You can find it in the
oldest dictionary you have. Annuity means income. An annuity
is neither a life insurance nor health insurance policy. It is not
a savings account or savings certificate. You should not buy
an annuity to reach short term financial goals. There are several
different types of annuities. The word 'annuity' of course means
income. The word 'deferred' means income later. The word
'immediate 'means income now. There are two types of annuities,
fixed and variable. The word 'fixed' doesn't necessarily mean
your interest is fixed, it means your premium earns a minimum
guaranteed interest rate. Variable, which involves risk means
the dollars (your premium), you put into a variable annuity can
vary up and down.

Contingent Payee The party who will receive any life insurance or annuity proceeds that are still payable at the time of the primary payee’s death. Also called the successor payee. Whole life insurance for which premiums are payable throughout the life of the policy. Also called straight life insurance. Contract of Adhesion A legally binding agreement that is prepared by one party and that must be accepted or rejected as a whole by the other party, without any bargaining between the parties to the agreement. Insurance contracts are contracts of adhesion.

Life Insurance There are two parts to a fixed deferred guaranteed income
annuity, a current interest rate and a minimum guaranteed interest
rate. The minimum guaranteed interest rate is the lowest rate that
your annuity will earn. This rate is stated in the contract. The current
rate is linked to the reserves and interest the company earns on their
portfolio, or for an external reference or index. You can buy a fixed
deferred annuity and start your interest income thirty days later.
However, it is better to wait twelve months, and then take the previous
years earned interest through the second year.

The person entitled to receive an annuity. Annuity A series of payments made periodically for a specific period of time. The payment amounts can be variable or fixed. Many insurance companies sell a wide variety of annuity contracts with payments that begin immediately upon purchase of the contract or are deferred until some time in the future. Some annuity contracts waive their surrender charges (early withdrawal penalties) in the event of a lengthy hospital stay, nursing home confinement, or terminal illness.

Insurance Life Premium With an IRA, you can put your individual retirement account inside
of a fixed annuity, the only vehicle that can provide a guaranteed
retirement income to last you as long as you live. Insurance companies
are required by law to have reserves that back up the guarantee.

Cash Refund Option A form of the life income option with refund which specifies that any proceeds remaining when the beneficiary dies will be paid in a lump sum to the contingent payee. Contrast with the installment refund option. Cash Surrender Value (1) In a life insurance policy, the amount of money, adjusted for factors such as policy loans or late premiums, that the policyowner will receive if the policyowner cancels the coverage and surrenders the policy to the insurance company. Also called the net cash value. Compare to cash value. (2) In an annuity, the amount that a contractowner will receive if he surrenders a deferred annuity. This amount is equal to the accumulated value of the annuity less any surrender charges specified in the policy.

Health Insurance Policy Jeff McLeod is a fixed index-linked retirement income annuity specialist.
To get a copy of the Buyer's Guide visit www.HappyRetiree.com

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One core issue raised in the report was how much access could retirees have to their account funds. Would they be allowed to take lump sums upon retirement, -insurance contracts that guarantee monthly payments for life If annuities are required, will a government entity or private insurers provide them Under current law, insurance is regulated by the states, but a greater federal role might be desirable. And if retirees are given choices about purchasing annuities, who will advise them and to what extent would advisers be responsible for bad investment advice

Insurance Life Premium Return

Whole Life Insurance Policy Jeff McLeod is a Certified IRA Distrabution Advisor

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