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Lifetime Income Annuity?
Posted on 8/21/14 at 11:07 am
Posted on 8/21/14 at 11:07 am
What are the pros/cons of lifetime income annuity insurance?
5
Posted on 8/21/14 at 11:29 am to offshoretrash
Pro's: lifetime income, will never stop receiving payments even if payments exceed amount put in.
Con's: Expensive, Illiquid, Expensive again.
Con's: Expensive, Illiquid, Expensive again.
Posted on 8/21/14 at 2:45 pm to offshoretrash
Annuities are for chumps. If you and your spouse die in a car accident, your kids get nothing.
Those insurance actuaries like annuities for a reason...it enriches insurance companies.
Those insurance actuaries like annuities for a reason...it enriches insurance companies.
Posted on 8/21/14 at 3:11 pm to offshoretrash
quote:
lifetime income annuity
Offshore make sure you look very closely at the fees schedule associated with each feature of the product. More often than not there's an annual fee associated with a lifetime income benefit.
Posted on 8/21/14 at 7:04 pm to offshoretrash
Pros:
lifetime income stream
the person selling it to you gets a big commission
Cons:
low returns/growth
expensive admin fees
usually penalties if you need to cash it out, forfeiting any growth
extra fees for adding other benefits
decreased payments for adding spouse
Annuities can fill a specific need here and there, but generally the only winners are the insurance companies and the salesman.
lifetime income stream
the person selling it to you gets a big commission
Cons:
low returns/growth
expensive admin fees
usually penalties if you need to cash it out, forfeiting any growth
extra fees for adding other benefits
decreased payments for adding spouse
Annuities can fill a specific need here and there, but generally the only winners are the insurance companies and the salesman.
Posted on 8/22/14 at 7:05 am to offshoretrash
Pros: guaranteed stream of income, multiple payment/beneficiary options, can provide inflation protection and growth potential depending on product, reduced market risk
Cons: fees, additional fees for inflation protection, surrender charges, mostly illiquid, lose some growth potential to provide guarantees, some products are trash
I guess another con is the general ignorance about many of the products. Some of the investments mentioned above are built into some annuities, so I dont get the "diversify" talk. And the common "you die and the evil insurance company takes all your money" only happens if you choose that option for your account, which rarely happens.
They are great in the right situations but definitely not a must have product for everyone.
Cons: fees, additional fees for inflation protection, surrender charges, mostly illiquid, lose some growth potential to provide guarantees, some products are trash
I guess another con is the general ignorance about many of the products. Some of the investments mentioned above are built into some annuities, so I dont get the "diversify" talk. And the common "you die and the evil insurance company takes all your money" only happens if you choose that option for your account, which rarely happens.
They are great in the right situations but definitely not a must have product for everyone.
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