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There are basically two risks in life - that of dying early and that of living too long. Life insurance - basically term insurance - covers the former while endowment insurance covers the latter. But the question of living too long can not be easily covered by endowment insurance where the payout is immediate on the happening of the covered event, that is, maturity. The payment is in one lump sum mostly. Annuities are basically used to cover this eventuality of living too long, by paying money in installments spread over a long period of time - mostly till death. This method therefore forms the basis of pension business. The funding methods are also different - the collected fund is used to form a corpus from where the payouts are made. Therefore pension funds need long term investment avenues with good returns. After all nobody can be sure how long somebody will leave, but pension funds have to ens ure the payments till death - at the same rates as the first installment.
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Is an annuity a type of life insurance?
Yes an annuity is a life insurance product. Its kind of like the opposite of life insurance.
Is a flexible premium multifunded life insurance an annuity?
Its a Universal life insurance Policy.
Is there a difference between a life annuity and an insurance annuity?
There isn't a real difference between life annuity and an insurance annuity. Both are a form of life insurance and deal with the same issues. I would go with either one.
Can a loan be taken on a life ins policy that is linked to an annuity?
Yes, most life insurance policies that accumulate cash value give you the option to take loans, not to exceed the cash value amount. It does not matter if the life insurance premiums are paid from an annuity.
Can life insurance cash value be converted into an annuity?
The cash value can be borrowed from the insurance policy and an annuity purchased with it. Depending upon the insurer, you may be able to have the two transactions done with the same company (assuming you wish to buy an annuity product from that company). Keep in mind, however, that the cash value withdrawal is a loan that accrues interest according to the terms of the policy. Therefore, in order to make the transaction worthwhile, the annuity must throw off sufficient income to make up for the reduction of value of the insurance policy due to accruing interest on the policy loan.
Is an annuity a type of life insurance?
Yes an annuity is a life insurance product. Its kind of like the opposite of life insurance.
Is a flexible premium multifunded life insurance an annuity?
Its a Universal life insurance Policy.
What is the definition of "axa variable annuity"?
The definition of AXA Variable Annuity is a life insurance policy that give the option of market appreciation. It gives you a variety of investment options with your policy.
how much tax will I pay from an insurance policy and annuity from a diseased parent?
Life insurance proceeds are usually tax-free.
Is the variable annuity life insurance any good?
Variable annuity is good for a person looking for long term invesment options if they are wanting to retire in the future. It is a great option for that, but it may not be the best option for a life insurance policy. However, there are some reliable variable annuity life insurance companies like Valic.
Is there a difference between a life annuity and an insurance annuity?
There isn't a real difference between life annuity and an insurance annuity. Both are a form of life insurance and deal with the same issues. I would go with either one.
Can a loan be taken on a life ins policy that is linked to an annuity?
Yes, most life insurance policies that accumulate cash value give you the option to take loans, not to exceed the cash value amount. It does not matter if the life insurance premiums are paid from an annuity.
Where can I get variable annuity life insurance?
To get variable annuity life insurance speak to you local insurance company. A lot of insurance companies now offer many types of insurance; car, life, renter's, etc. Metlife, Pacific Life, Mutual, and many others are examples of where you can get variable annuity life insurance.
Who bought southern life insurance company of greensboro nc and how to i get information on a policy?
Southern Life Insurance became London Pacific Life and Annuity in 1989. It later became Philadelphia American Life. For information on a policy you can visit the company's website at www.philadelphiaamerican.com.
What type of insurance contract requires a lump some or periodic payment in exchange for receiving periodic payments from the insurance company?
That could be an annuity, or a permanent life insurance policy.
Can life insurance cash value be converted into an annuity?
The cash value can be borrowed from the insurance policy and an annuity purchased with it. Depending upon the insurer, you may be able to have the two transactions done with the same company (assuming you wish to buy an annuity product from that company). Keep in mind, however, that the cash value withdrawal is a loan that accrues interest according to the terms of the policy. Therefore, in order to make the transaction worthwhile, the annuity must throw off sufficient income to make up for the reduction of value of the insurance policy due to accruing interest on the policy loan.
What is the difference between annuity life and whole life insurance?
1. annuity is paid till a person passes away whereas life insurance is paid after a person passes away to the beneficiaries 2. annuity is paid as periodic installments whereas life insurance is paid as lump-sum. 3. annuity support future income requirement. life insurance support the need of beneficiaries. 4. annuity is a retirement planning tool whereas life insurance is a product providing inheritance. 5. annuity pays back total value + gains earned. life insurance may provide benefit multiple times larger than premium paid ZEBA
