Annuities

A charitable lead annuity trust is a type of account that specifies a certain amount of money to go to a certain charity every year. This type of trust can be either vivos or testamentary.

what amount should be recorded as the cost of a machine purchased December 31, 2003, which is to be financed by making 8 annual payments of 8,000 each beginning December 31, 2004? the applicable interest rate is 8%

They are one in the same but the surrender value is the cash value minus surrender charges. Over time the surrender charges go away.

PVannuity=C*[(1-(1+i)^-n)/i]

PVannuity=100*[(1-(1+.06)^-3)/.06]

PVannuity=$267.30

To answer using a financial calculator enter the following:

n = 3

I/Y = 6

FV = 0

PMT = -100

Compute PV

Annuity death proceeds do not pass by will or state intestacy laws. Like life insurance, employer-sponsored retirement plans and IRAs, annuities pass to the beneficiaries named. If there is no named beneficiary, then proceeds, at death, will pass to the estate of the owner, (and would then pass by will).

Universal life insurance is a type of whole life insurance. Universal life differs from other whole life policies in that it allows the policy owner to vary, with limitations, the amount and timing of premium payments and the death benefit. These changes can be made while the policy is in effect.

Universal life is NOT whole life. Universal life is Annual Renewable Term plus cash value (a savings). Look at your universal life policy. First, look on the page that shows your policy number, name, coverage amount, etc. Look to see if you have option 1 or option 2 (it may be under option I and option II, or A,B)

If you have option 1 - your beneficiary only gets the FACE AMOUNT. Assume you have $100,000 of coverage and $5000 of savings. When you die, your beneficiary only gets the $100,000!

However, if you have option 2 (which usually has a higher premium) your beneficiary gets BOTH the face amount plus the cash value.

Having that knowledge, who would choose option 1? It's usually never explained. Also, if you look at the index of your policy, you can look up the definitions of Option 1 and Option 2,

With Universal Life being Annual Renewable Term (plus cash value), the cost of insurance goes up every year because the odds of dying are greater. There is a table that shows your cost of insurance per $1000 of coverage in your policy. Look at how the cost goes up EVERY YEAR.

But your premium doesn't neccessarily go up. Eventually what happens is that your monthly premium can't cover the cost of insurance, so the company will take money out of your cash value.

(Ever hear it will pay for itself?) Yet, you'll get to a point where you have no more cash value left, and the premiums are too expensive to continue the insurance.

Once again, the insurance company wins.

Universal life is neither whole life or annual renewable term. It is a distict animal all it's own. The basic premise in universal life is that the cost of insurance for younger ages can (and should) be overfunded.

This amount of overfunding is the cash value. The benefit of this strategy is that the cash value can grow at a modest market sensitive interest rate and can accumulate to a point where the internal cost of insurance can be subsidized by this cash value when the premiums are insufficient to pay for the COI.

Based on the future experience of the crediting interest rates, a reasonable approach can be taken to increase or decrease premiums as required to keep the policy in force for a specified period of time. UL cannot effectively be compared to term insurance, nor is it easy to compare to Whole Life policies.

The differences in Options 1 & 2 death benefits are associated more with the desire to view the instrument as a life insurance policy or a cash accumulation vehicle. There are many other factors that should be looked at to maximize the benefits for either situation, but that being said, they can function as either a cash accumulator or a death benefit engine economically but can not be both at the same time.

A permanent life insurance policy has three components - the death benefits (protection), the expense component and the cash value component. A universal life insurance policy will differentiate and itemize these three components, which will allow for more flexibility in the policy. The policy owner then has the facility to modify the face amount or the premium rate (under specific guidelines) to meet with changing circumstances and needs in his or her life.

Shirley Chisholm is famous for being the first black congresswoman. She was elected in 1968 and represented New York. She ran for President in 1972.

Shirley Chisholm married to Conrad Chisholm in 1949 Shirley Chisholm married to Arthur Hardwick, Jr. in 1977

No, monies that a beneficiary receives are free of tax. One thing though, when a person dies, their representative collects all assets and pays off any taxes due to the IRS, state and municipalities first, later taking care of all debts unpaid, then the money and assets left over are divided among the beneficiaries according to the will.

because it is gold and gold is very priceless

It's too bad you didn't get a "prenuptial agreement" when you both got married (since you were married the 2nd time.) Your problem happens to a lot of women. Usually when the husband passes away the house and most monies and other properties goes to the wife and the husband may have specified other things go to their children, or even a percentage of the monies left. Give it a shot and ask your husband if other arrangements couldn't be made, such as you keeping the house and a percentage of monies left to the son instead. If he is firm on the way he has his Will then I would certainly seek out a lawyer to see what your rights are. It isn't fair that you helped pay for this house (hope you can prove it) and NO you shouldn't help out with your annuities and stash it away for yourself. I have no idea if your husband is aware of the fact that you really should get the house and it's not fair to leave it to his son and you may be out in the street. See that lawyer! Good luck Marcy

John Hancock Annuities provide many services like 401(k) plans, mutual funds, college savings, life insurance, and long-term care. In all helping you protect your assets.

yes. A million dollars seems like a lot of money to you. However, when it comes to government, it's just a small fund. Why? Did you win?

Yes, annuity payments can be garnished under certain circumstances. If a creditor obtains a court judgment against the annuity holder, they may be able to garnish payments to satisfy the debt. However, the specifics can vary based on state laws and the type of annuity. It’s advisable for individuals to consult a legal professional to understand their rights and protections regarding garnishment.

UBS AG 100 Half Day Rd. PO Box 1547 Lincolnshire, IL 60069-1547 To Whom It May Concern, Name: Nancy Louise Lane Address: PO Box 4847, Fayetteville, AR 72702 SSN: 420-66-0559 Date of Birth: Nov. 13, 1951 Telephone: 479 935-4270 re: Signanture Guarantee Letter Sincerely, Nancy L. Lane

It may be worked out that way in the will. Or if a trust were set up that way, it is often done to protect assets.

Depends on divorce decree or pre-nup.

civil list

The PV of a 30 year 800 per year annuity is 6,444 if the payment is received at the end of the year and 7,217 is the payment is received at the start of the year

Your annuity will decrease in value as your interest earned would decrease, which would just continue to snowball because that would make your principal value less even further down the road, causing your annuity to devalue even more.