Who buys annuities? What is the average value of an annuity contact? How much incomes does the typical annuity investor earn? The Gallup polling organization conducts periodic surveys of non-qualified annuity owners across the country to identify these questions. Matching their findings with your particular situtation can serve as a good rule of thumb, helping … Read more
There are over 2000 insurance providers in the United States. Of these, a couple hundred offer annuities and life insurance. The following is a list of the top 35 annuity companies and their security ratings. AM Best, Moody’s, Standard & Poor’s, and Fitch are the world’s leading financial rating institutions. Company: A.M. Best: Moody’s: S&P: … Read more
Definition of an Annuity An annuity is a contract between one or more individuals and an insurance company. In exchange for payment, the insurance company agrees to provide regular, periodic income to the individual(s). An annuity can provide a stream of income that the holder cannot outlive. This unique attribute makes it especially attractive as … Read more
1035 Exchange: A tax-free transfer of an annuity contract from one insurer to another. A good reason to switch insurance companies is to lock in a higher return rate. Although a 1035 transfer is tax-free, it might be accompanied by a surrender charge if surrender fees have yet to lapse. 401(k) plan: A plan offered … Read more
The Life annuity hearkens back to the days before annuities were investment vehicles, when the word annuity simply meant a stream of income payments whose duration matched the lifetime of the recipient. In traditional financial theory, an annuity is a level stream of payments extending indefinitely into the future. In the 19th century, insurance companies … Read more