Life and Annuities

Insuring your future and protecting your amenities.

When it comes to your long-term financial planning, you should consider adding annuities and life insurance policies to your check-off list. In simple terms, life insurance provides financial protection for your loved ones if you pass before your financial obligations are met. When it comes to annuities, this policy protects you from outliving your assets.

While both of these policies do include death related measures, life insurance is purchased in the event that you pass too soon and annuity in case you live too long. You can learn more about each of these policies below.

What Is life Insurance?

Life insurance is the one form of insurance policy that has nothing to do with protecting you, but financially protecting your beneficiaries if you die. There are several different kinds of life insurance, but the most common are term insurance and permanent insurance.

Term life insurance

provides only protection and flexible premiums for a specific period of time, during which, if you die, your beneficiaries will be awarded a benefit. People usually opt for term life insurance until they reach a point where they consider it “safe” to withdraw, such as when their home is paid off or their children graduate from college.

Permanent life insurance

provides lifelong protection to beneficiaries and is priced for you to keep over a long period of time. This type of insurance acquires cash value, and the premiums are usually fixed.

Why Is Life Insurance Important?

Life insurance is important to different people for different reasons. Some people may opt to never have life insurance at all. Depending on your financial goals and family situation, your policies and premiums will differ. If you’re afraid of leaving behind a large debt or taking a safety net away from your beneficiaries, you may want to consider buying life insurance.

Get Covered

Purchasing life insurance from our providers gives you a variety of options, including the following:

  • Income replacement during working years
  • Wealth transfer
  • Preservation
  • Tax-deferred Wealth Accumulation
  • Income protection

What Is an Annuity?

An annuity is a policy you put money into in order to grow those funds and receive them as income. That income can be received either immediately or at a later time with a rate of return, such as during retirement. You can choose to either pay a lump sum or a number of payments paid yearly.

Types of Annuities

Immediate Annuity

A long-term contract that provides guaranteed payments almost immediately after making your first payment. These payments can be received either over a lifetime or within a specified period of time.

Deferred Annuity

Lets you choose when you want the payments to start coming in, usually upon retirement after earning tax-deferred interest.

Fixed Annuity

The insurance company takes the investment risk by placing money into a fixed rate, such as in a bond. It guarantees a minimum interest rate you will earn over time.

Do you need assistance in deciding what policy meets your needs? Reach out to one of our local agents, today.

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