0
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.
What else can I help you with?
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 are the key differences between a life insurance policy and an annuity?
The key difference between a life insurance policy and an annuity is their purpose: life insurance provides a death benefit to beneficiaries upon the policyholder's death, while an annuity provides a stream of income during the policyholder's lifetime or for a specified period.
What is the payout structure for an annuity life insurance policy?
The payout structure for an annuity life insurance policy involves regular payments made to the policyholder either for a set period or for the rest of their life, providing financial security and income.
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.
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 are the key differences between a life insurance policy and an annuity?
The key difference between a life insurance policy and an annuity is their purpose: life insurance provides a death benefit to beneficiaries upon the policyholder's death, while an annuity provides a stream of income during the policyholder's lifetime or for a specified period.
What is the payout structure for an annuity life insurance policy?
The payout structure for an annuity life insurance policy involves regular payments made to the policyholder either for a set period or for the rest of their life, providing financial security and income.
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.
What are the benefits of investing in a life annuity insurance policy for long-term financial security?
Investing in a life annuity insurance policy can provide long-term financial security by offering a guaranteed income stream for life, protecting against outliving savings, and providing a stable source of income during retirement.
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.
