Life Insurance Quotes

Why it's wise to invest in annuities

08/08/11

A recent Milwaukee Journal Sentinel article highlights the benefits of annuities in establishing a long-term budget that will last throughout retirement.

"What scares me most for this country, especially for the baby boomer generation, is that many people will have to rely on their investment smarts in managing retirement funds. Many have no training, or interest, in managing money," says Steven Weisbart, an economist with the Insurance Information Institute.

Annuities are contracts that are sold by life insurance companies, guaranteeing a source of income during retirement. The source particularly notes the benefits of fixed annuities, which provide guaranteed interest rates. The rates on annuities are generally lower than other types of investments, but these accounts are especially comforting to have when uncertain investments rise and fall in value.

Annuities also normally allow investors to name a beneficiary, in case they die before all the money has been paid out of the account.

"The goal is to understand what you're buying and approve the terms," says Weisbart. The article recommends only purchasing annuities from insurance providers that are AAA-rated.

The 2005 Gallup Annuity Survey found that the typical person who purchases an annuity is middle-class, with a household income of $40,000 to $75,000 per year. The average age of first-time purchasers is 50, while the average age of an annuity owner is 66.

Talk to an Advisor

A licensed insurance advisor can explain your options and help you choose the right life insurance for your needs.

Call: 1-800-823-4852

Chat: Live Advisor Chat

Sm

A few of the carriers we quote