Life Insurance Quotes

Investors taking a more careful look as annuities become complex

10/06/11

According to an article in Annuity News, in the past 10 years, Americans have invested more than $1 trillion in annuities. Annuities have evolved to include a number of different benefits, and annuities salespeople have been tasked with helping retirees navigate the increasingly complex waters of annuities investments.

One of the first things an annuites salesperson must understand about a potential investor is his or her investment requirements. In some cases, an annuity can provide an additional source of financial stability to a retiree, while in other cases, the annuity is like a life insurance policy, and will act in the financial interest of beneficiaries following the policyholder's death.

Annuities are often taxable when they're transferred from a policyholder to beneficiaries, so properly establishing an appropriate transfer plan is critical to maximizing gains. In some cases, this means leveraging annuities investments in an indexed life insurance policy, but other options, like completely investing funds in annuities, have tax benefits as well.

As annuities, and in particular annuities transfer processes become increasingly complex, investors may want to enlist the expertise of a financial adviser to guarantee they have a comprehensive plan in place, not only to ensure adequate payouts, but guarantee a successful transfer of funds if necessary.

According to the Insurance Information Institute, annuities sales in the United States saw a significant decline in 2010, falling 27 percent.

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