Why are fixed annuities considered insurance products?
• They are considered insurance products because the financial institution backing the annuity must be willing to guarantee a minimum interest rate and guarantee a minimum income payout. The company promises are explained in each annuity policy. Can you explain the term “guaranteed-income payout?” • This is a fixed annuity’s most overlooked benefit. Based on your age and contract value, the company guarantees to pay you an income stream for a certain period or the rest of your life. A Wall Street study on asset allocations Risk concluded stable income is the foundation of every investment portfolio. What are other benefits to owning an annuity? • The IRS has no maximum deposit limits, and distributions are not required. Both apply to other tax-favored vehicles such as IRAs and pension plans. Can fixed annuities help in estate planning? • Yes, annuities can help you avoid the delay and expense of probate. You could lose 5% to10% of your estate to probate and attorneys fees! Most annuiti
