Article Abstract:
Careful review of the life insurance plans being offered by a large discount securities brokerage reveals sales tactics and premiums that may be no better than those offered by insurance agents. The brokerage claims to offer lower premiums and no hard-sell tactics, but advertised premiums change with subsequent underwriting. In the long-run, quality life insurance firms can offer policies that will provide greater benefits. Clients will also benefit from the more individualized services that a life insurance agent can provide.
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Article Abstract:
Indexed annuities provide investors with the security of guaranteed minimum returns and the ability to peg profits to the performance of the stock market. Traditional fixed annuities offer guaranteed income, but recent returns on investment have been lackluster. Variable annuities have higher yields but possess risks of loss that may be unacceptable to annuities purchasers. The return for indexed annuities is tied to a broad stock market index and reduced by a spread intended to cover the insurer's expenses and profits.
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Article Abstract:
Fixed rate annuities have become a more popular life insurance purchase since mid-1994 as interest rates increase and the equity market becomes more volatile. The purchase of variable annuities had been growing at the expense of fixed terms throughout the 1990s as interest rates remained low and bonds and other equity grew in value. The typical terms and returns of fixed annuities, for which premium payments are not deductible but taxes on gains are deferred, are discussed.
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