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What is value of payment on an life insurance annuity if owner dies before any payments?
Wiki User
∙ 13y ago
Great product, an annuity. My friend had $8,000 in his one day and the annuity paid 100% overnight. Excitedly, he told me the next morning that he had $16,000 then. Happy guy. However, an annuity kind of works like a savings account at the bank. No money in it? No money paid out. $10 in it? $10 paid out. $100,000 in? $100,000 paid out. Disclaimer: an annuity is not a savings account. I just used that term to show you how it works.
Wiki User
∙ 13y ago
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What is life annuity with period certain?
A life annuity with period certain is a type of annuity that provides regular payments for the rest of the annuitant's life, with a guaranteed minimum payment period specified in the contract. If the annuitant dies before the guaranteed period ends, payments will continue to a beneficiary until the end of that period.
What is a life annuity with period certain?
A life annuity with period certain is a type of annuity that provides regular payments for life, with a minimum guaranteed period during which payments will continue, even if the annuitant dies. If the annuitant dies before the end of the guaranteed period, the payments will continue to a beneficiary until the end of that period.
What is an annuity and how does it work?
A variable annuity is an agreement between a person and an insurance company. A certain amount is given every month to the person receiving the annuity. They offer many pay options if someone is to die before the annuity is paid out. It is a way to take the money you are given and increase the amount by accepting smaller payments monthly vs. one large lump sum up front.
Which type of annuity pays an amount per year to you and your spouse until the last one dies?
A joint annuity with a survivors benefit. However you purchase the joint annuity first. The payout procedure doesn't actually take affect until you would decide to annuitize the annuity. This is beneficial because if the first spouse passes away before the annuity is annuitized (set up for lifetime payments) the living spouse has the ability to receive it as a single payout annuity giving them a larger payment each month.
How does endowment insurance work?
It is a life insurance policy that pays a giant sum of money when a person dies. This payment is traditional with benefits and many receive this. Many invest in these payments before they pass or when an event happens.
How can mortgage payment protection insurance help you?
Mortgage payment protection insurance can help a person if they become unable to make the mortgage payments due to an accident, unemployment, or sickness. There are restrictions in place, so one must check carefully before signing on the dotted line.
Are sight drafts which require presentation of the vehicle title by the lienholder to the liable insurance company before payment is made to lienholder for a total loss commonly used in the industry?
Yes, they are the only manner of payment allowed in many states for claims payments.
What happens after 15 years with a 15-yeAr certain and life annuity?
After 15 years with a 15-year certain and life annuity, the annuity payments will continue for the rest of the annuitant's life even if they live beyond the initial 15-year period. If the annuitant passes away before the end of the 15 years, the payments will continue to a designated beneficiary for the remainder of the 15 years.
How To Choose The Best Annuity Payout For Your Retirement?
Annuities are financial investments sold by insurance companies and are used to plan for retirement income. There are numerous annuity payout options, and the investor should determine his financial needs and get quotes from several companies before making a decision.Annuities come in two forms: fixed and variable. Fixed annuities offer a guaranteed rate of return for a specified period of time. Most fixed annuity contracts have a minimum guaranteed interest rate. Although the rate of return is guaranteed, it will, however, be reset periodically to adjust to changing market conditions.Variable annuities place the investor’s funds into a group of mutual funds. While this should provide some protection against inflation, the annuity payout can vary.The annuitant has several annuity payout options. With fixed or variable annuities, the payout can be set for a specific number of years. If the investor is concerned about outliving his investment, there is an option that provides a payout for the lifetime of the annuitant.Another annuity payout option allows the payments to go to the spouse in case the annuitant passes away before the termination of the contraction. Some insurance companies even offer the option of continuing lifetime payments to the annuitant’s spouse.While the income earned on an annuity is tax-deferred, the annuitant will have to pay taxes at ordinary income rates on the withdrawal payments. Fortunately, a portion of the annuity payout will be treated as a return of capital and not taxable; this is known as the exclusion ratio.An investor considering the purchase of an annuity should determine, as much as possible, what income his needs are going to be in retirement, and whether or not he wants the payments to continue on to his spouse after his death. The insurance companies are going to charge fees for all of these additional options, and they will vary amongst the different companies.After the investor has defined his needs, he should get quotations from several insurance companies and select the annuity that fills his requirements at the lowest price. The investor can save himself a lot of money by doing his homework before making the purchase.
Can blue cross be reimbursed on a settlement from an auto insurance uninsured motorist policy?
This will depend on regulations for different states as well as policies. In most cases automobile medical payments will pay before health insurance will be responsible for remaining expenses from an automobile accident. If Blue Cross was billed and paid first before finding out that their was payment due from the person's auto policy then yes, Blue Cross will have to be reimbursed for the payment they made.
Will life insurance pay for cancer hospital bills?
Life insurance makes a single payment to the designated beneficiary for the entire amount of insurance. It does not pay addidtional amount for hospital bills or such. Don't confuse life and health insurance. Generally the hospital cannot make any claim on the life insurance payment made to the benificiary. Some life insurance policies have provisions that can make payments directly to the insured for part of the life insurance if the disease is terminal. The payments are at the request of the insured to use in any manner they desire.AnswerDepending on the insurance policy, a terminal patient may obtain funding to cover treatment while they are still alive. This is not a loan. After death, before the estate can pay out, the bills have to be paid.
How much of the 20943 distribution reported on Form 1099-R is taxable?
If the 1099-R does not have the taxable amount shown in box 2a taxable amount and box 2b is checked taxable amount not determined you could contact the trustee and see if they can help you in determining the taxable amount of your distribution.For some information about this you can go to www.irs.gov and use the search box forTopic 411 - Pensions -- the General Rule and the Simplified Methodhttp://www.irs.gov/taxtopics/tc411.htmlIf you made after-tax contributions to your pension or annuity plan, you can exclude part of your pension or annuity payments from your income. You must figure this tax-free part when the payments first begin. The tax-free amount remains the same each year, even if the amount of the payment changes.If you begin receiving annuity payments from a qualified retirement plan after November 18, 1996, generally you use the Simplified Method to figure the tax-free part of the payments. A qualified retirement plan is a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan. Under the Simplified Method, you figure the taxable and tax-free parts of your annuity payments by completing the Simplified Method Worksheet in the Form 1040 Instructions or Form 1040A Instructions or in Publication 575, Pension and Annuity Income. For more information on the Simplified Method, refer to Publication 575, or if you receive United States Civil Service retirement benefits, refer to Publication 721, Tax Guide to U.S. Civil Service Retirement Benefits.If you began receiving annuity payments from a qualified retirement plan after July 1, 1986 and before November 19, 1996, you generally could have chosen to use either the Simplified Method or the General Rule to figure the tax-free part of the payments. If you receive annuity payments from a nonqualified retirement plan, you must use the General Rule. Under the General Rule, you figure the taxable and tax-free parts of your annuity payments using life expectancy tables prescribed by the IRS. For a fee, the IRS will figure the tax-free part of your annuity payments for you. For more information, refer to Publication 939, General Rule for Pensions and Annuities.http://www.irs.gov/publications/p575/index.htmlHow to use the Simplified Method. Complete Worksheet A in the back of this publication to figure your taxable annuity for 2009. Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year. To complete line 3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25. You do not need to complete line 3 of the worksheet or make the computation on line 4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. Instead, enter the amount from line 4 of last year's worksheet on line 4 of this year's worksheet.Single-life annuity.
