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| Group and Individual Health Insurance | Life Insurance and Estate Planning | Annuities |
| Retirement Planning and Employee Benefits | Long Term Care and Disability Insurance | Small Business Specialy Insurance |
Annuities
When purchasing an insurance or financial product, the client must be well informed. The sole presentation of quotes and numbers do not give the complete picture of the purchase. The role of our agents is to inform our clients of all the options available for them to choose a product that meets their needs, expectations and budget. We refuse to be an online volume seller. Our unique and personalized service has been the key to our success for the past 15 years.
Annuities are financial products that are typically issued by the same companies that issue life insurance policies. The risks undertaken by the issuer are fundamentally the same for both products; that is, the insurance company considers the risks using the life expectancy of the customer. Annuities may accumulate value or pay an income to the client over a period of years.
- A single premium deferred annuity, is an instrument used during "the accumulation period" or working life of the individual. Under this set up, the individual pays for the annuity with a single lump sum. The annuity then earns a tax deferred interest if it is fixed. The annuity can also be variable and the funds invested in securities such as mutual funds. This later option comes with a risk of loss of value due to market fluctuations. Another option of deferred annuities comes as a flexible premium deferred annuities whereas the individual can make periodic deposits into the account. Some qualified (pre-tax) options of this alternative are 401(k)s, SEPs and IRAs.
- Immediate annuities or income annuities are used in "the distribution period" or retirement life of the annuitant. A lump sum is used to buy the annuity whose payments will replace the retiree's wage payments for a chosen period or for the rest of the retiree's life. The advantage of such an annuity is that the annuitant has a guaranteed income for life. The alternative of withdrawing money regularly from a retirement account carries the risk ( assumed by the insurance company) that the retiree might run out of money before the retiree dies or not have as much to spend while the retiree is alive.
- There are other types of annuities. Some examples are: a stream of payments as a settlement of a personal injury lawsuit, lottery winnings, "joint and survivor" annuities which continue paying a second person after the annuitant dies and many more.
The purchase of an annuity as well as all financial products is an important decision. A meeting face to face with an ethical, professional and experienced agent is conductive to choosing the right annuity. An agent with series 6 license is more likely to give you a broader choice of annuities that best fit your needs.
The choice of a top rated insurance company is even more important. Top rated, mutually structured, triple A, superior rated life insurance companies usually train and select their professionals better. The financial strength for this type of product must be taken into consideration by the client.
Every individual has different retirement objectives and risk tolerance. The annuity must be tailored to meet the client’s needs, objectives and expectations.