• Home
  • Get A Quote
  • Customer Service
  • Refer a Friend
  • About Us
  • Location Map
  • Employee Directory
  • Privacy Policy
  • Contact Us
Home
Call Us CALL US TODAY | (800) 301-8818
Español
  • Home
  • Get A Quote
    • Annuities Form
    • Tax Free Retirement Information Request
    • Social Security Benefits Request
    • Lifetime Income Information Request
    • Life Insurance Information Request
    • Mortgage and Life Insurance
    • Final Expense/Burial Insurance
  • Financial Services
    • Annuities
    • IRA
    • 401k
    • Tax Free Retirement Plans
    • Social Security Benefits
    • Lifetime Income
    • Life/Mortgage Insurance
    • Final Expense/Burial Insurance
  • Blog
  • Resources
    • Awards
    • Activities
    • Join Our Newsletter
    • Privacy Policy
  • About Us
    • About Aim Inc.
    • Customers Reviews
    • Location Map
    • Employee Directory
  • Contact
Annuities IRA/401k ANNUITIES IRA/401K Read More
Tax Free and retirement plans TAX FREE RETIREMENT PLANS Read More
Social Security Benefits SOCIAL SECURITY BENEFITS Read More
Lifetime Income LIFETIME INCOME Read More
Life/Mortgage Insurance Insurance LIFE / MORTGAGE INSURANCE Read More
Final Expense FINAL EXPENSE/BURIAL INSURANCE Read More
Home > Blog > Who Buys Annuities, And Why
MONDAY, DECEMBER 16, 2019

Who Buys Annuities, And Why

Annuities are often recommended as a solution for the risk of outliving your money. But if you die young, you might not realize that full value. So should clients consider their life expectancy before considering an annuity?

"A person in poor health and with a limited life expectancy may not see much of a need for protected lifetime income in retirement," says Adam Lalla, vice president of competitive market solutions at Radnor, Pa.-based Lincoln Financial Distributors. "However, many clients are unaware what their actual life expectancy could be."

That doesn't mean it shouldn't be on their advisors' minds. "Professional, licensed insurance agents definitely should consider health and longevity expectations in their recommendations to clients," says Michael Zmistowski of Financial Planning Advisors in Tampa, Fla.

But don't worry, Zmistowski notes. Dying young does not necessarily mean forfeiting an annuity's value or its guaranteed income stream. "It depends on the contractual conditions," he explains.

It is theoretically possible to lose the entire asset upon death. "You could buy an annuity that works that way," says Scott Stolz, a president at Raymond James Insurance Group in St. Petersburg, Fla. "[But] almost no one choses such an option."

Most clients are "willing to take a little less income to get a guarantee that the income will last over two lives," he says, referring to the owner and spouse.

Lalla at Lincoln concurs. "The vast majority of annuities that are purchased for income have
 death benefit options for spouses and non-spouses," he says. "In fact, some death benefits guarantee a return of premium, regardless of investment performance."


It all depends on which type of annuity is chosen. "If a 'life only' payout option is selected, payments will stop when the client dies," says Jill Perlin, vice president of advanced planning and sales training in Prudential’s Individual Solutions Group in Newark, N.J. "If a 'joint and survivor' option is selected, however, payments would continue to the remaining annuitant—typically a spouse or partner."

Lincoln's Lalla says that whether a client has dependents can make a difference, too. "Consumers without dependents might prefer an annuity with the highest level of income but a less advantageous death benefit, such as a single premium immediate annuity (SPIA)," she says.

While inheritance may figure into the annuity decision, it's not typically the primary consideration. Prudential’s Perlin notes that clients who are concerned specifically with leaving a legacy often focus on life insurance, though an annuity can be an appropriate tool if, say, the client cannot get life insurance because of a pre-existing health condition.

Consider, too, that having a guaranteed income stream makes you less likely to become a financial burden on loved ones, and more likely to preserve other assets in your estate.

"When it comes to annuities, it's not an all-or-nothing decision," says Craig Hawley, head of Nationwide’s annuity distribution unit in Louisville, Ky. Clients who have a guaranteed income, he adds, enjoy "the flexibility to invest the rest [of their assets] more aggressively."

DECEMBER 16, 2019 • BEN MATTLIN

READ THE ARTICLE HERE

Posted 11:39 AM

Tags: annuities, annuity, spia, income stream, income
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016

  • retirement(105)
  • money(77)
  • savings(72)
  • annuity(51)
  • lifetime income(43)
  • annuities(38)
  • planning(37)
  • upland(28)
  • 401k(24)
  • aim inc(22)
  • free evaluation(22)
  • social security(21)
  • investment(21)
  • ira(18)
  • income(18)
  • social security maximization(12)
  • tax free retirement plans(9)
  • tax free retirement(9)
  • pension(9)
  • money management(8)
  • life insurance(8)
  • iras(7)
  • investments(7)
  • retire(7)
  • finances(6)
  • financial services(6)
  • taxes(6)
  • stocks(5)
  • social security benefits(5)
  • aim inc.(5)
  • facebook(4)
  • financial planning(4)
  • financial solutions(4)
  • linkedin(4)
  • social secuirity benefits maximization(4)
  • ira's(4)
  • final expense(4)
  • twitter(4)
  • tax free(4)
  • low-cost life insurance(4)
  • 2017(3)
  • new laws(3)
  • truth tabernacle(3)
  • bloomington(3)
  • southern california(3)
  • health(3)
  • mortgage insurance(3)
  • life policy settlements(3)
  • family event(3)
  • investing(3)

View Mobile Version
Facebook
LinkedIn
Twitter
YouTube
Instagram
Twitter Logo
logo
logo

Resources

Home About Us Get a Quote                                    Newsletter Contact Us

Contact Us

a drawing of a face
  • 517 N Mountain Ave
  • Suite 106
  • Upland, CA 91786

  • Toll-Free: 800-301-8818
  • Local: 909-985-3659
  • Fax: 909-949-8353
  • E: info@aimincusa.com
© Copyright. All rights reserved.
Powered by Insurance Website Builder