Beamalife's Article in Business

475 What Are Annuity Subaccounts?
One of the most popular types of annuities is the variable annuity. A variable annuity contract is often described as a mutual fund family wrapped in an annuity contract. This is because variable annuities offer a selection of investment options that are similar to mutual funds. The typical issuer will offer, at a minimum, a stock, a bond, and a money market fund within its variable annuity product. Many annuities offer a wide range of investment options, with up to 50 different funds.
Posted on Dec-27-2010

417 Understanding Annuity Expenses
Most annuity issuers impose various fees and charges for the insurance benefits and administration of an annuity. These fees may seem small, but they can add up over time. Indeed, if two different companies offer similar products, the fees being charged should be one of the overriding considerations in your decision-making process.
Posted on Dec-27-2010

324 Funding an Annuity: What Are the Options?
At the simplest level, annuities are funded when you make payments (premiums) now in order to receive payments (return of premiums and any earnings) later. However, annuity payments made prior to age 59½ may be subject to a 10% federal tax penalty unless an exception applies. Some annuities are funded with one payment (single premium annuities), and some are funded over time (flexible premium annuities).
Posted on Dec-27-2010

331 Immediate vs. Deferred Annuities
The terms immediate annuity and deferred annuity simply indicate when the distribution phase of the annuity begins. Both allow unlimited contributions, and both can provide, upon election, a continuous stream of payments for life.
Posted on Dec-27-2010

356 Fixed vs. Variable Annuities
Annuity products have grown more sophisticated over the years to meet the demands of today's more sophisticated investors. Just as mutual funds grew in popularity as an alternative to certificates of deposit, the variable annuity was developed as an alternative to the fixed annuity. Variable annuities offer potentially higher returns than fixed annuities. Of course, there is a risk of loss as well. So, deciding which annuity product to invest in often comes down to deciding how much risk you ar
Posted on Dec-27-2010

438 Guaranteed Annuity Contracts
As the name implies, a guaranteed annuity contract is an annuity that guarantees a fixed rate of return. In this respect, it is very similar to a fixed rate annuity. What distinguishes a guaranteed annuity contract is that it covers a group of annuitants who are usually linked through work or membership in a group or organization. Since multiple annuitants can be covered under one contract, the expenses (per ann
Posted on Dec-26-2010

532 Variable Annuities
A variable annuity is a contract between an individual (the purchaser) and an insurance company (the insurer). In return for premium payments, the insurer agrees to make periodic payments to the purchaser (if the purchaser elects this option), beginning either immediately or at some future date. Deposits can be made by either a single purchase payment or a series of purchase payments.
Posted on Dec-26-2010

500 Annuity Distributions
Annuity distributions are categorized in two ways: withdrawals or annuitization (guaranteed income stream). The annuity contract itself explains the annuitization payout options available to you, including when they begin, whether the amount can be fixed or variable, and how long the payouts will last.
Posted on Dec-26-2010

418 Tax Planning for Annuities
Favorable tax treatment is one of the main reasons for buying an annuity. But what exactly are the tax benefits? And are there any drawbacks? It's important to know the answers to these questions before deciding whether to purchase an annuity.
Posted on Dec-26-2010

342 Fixed Annuity Contracts
Traditional deferred fixed annuities have been around for a long time. And although these contracts can take several forms (some of which are relatively new), they all have common traits.
Posted on Dec-26-2010

314 Tax-Deferred Annuities: Are They Right for You?
Tax-deferred annuities can be a valuable tool, particularly for retirement savings. However, they are not appropriate for everyone.
Posted on Dec-21-2010

686 Annuity Basics
An annuity is a contract between you, the purchaser or owner, and an insurance company, the annuity issuer. In its simplest form, you pay money to an annuity issuer, and the issuer pays out the principal and earnings back to you or to a named beneficiary. Life insurance companies first developed annuities to provide income to individuals during their retirement years.
Posted on Dec-21-2010

746 Surrendering Your Life Insurance Policy
If you no longer need life insurance or want to cancel for some other reason, you might be thinking about surrendering your permanent life insurance policy and withdrawing the cash value that has accumulated. But before you do it, here are some things you should consider.
Posted on Dec-21-2010

338 Making Policy Loans and Withdrawals
Cash value life insurance refers to a wide variety of insurance policies that provide both a death benefit and a cash value component that may build tax deferred over time. Many cash value policies let you borrow or withdraw from the cash value. This can sometimes be a good way to raise funds for expenses or emergencies. However, before you take a loan or withdrawal from your policy, make sure you explore all of your options and understand the issues involved.
Posted on Dec-21-2010

417 Claiming Life Insurance Benefits
Life insurance benefits are not paid automatically. If you are the beneficiary of a life insurance policy, you must file a claim in order to receive any money. Often, this is as simple as contacting your insurance agent and the deceased's employer and filling out some paperwork. You will need to provide each insurance company with a certified copy of the death certificate.
Posted on Dec-21-2010

573 Viatical Settlements
A viatical settlement is the sale of a life insurance policy by an individual who is terminally ill. The individual sells the policy to a third party (often a viatical settlement funding company) that pays the individual a lump-sum cash payment that is a percentage of the face value of the policy, usually 40 to 85 percent. Terminally ill individuals may wish to sell their life insurance policies in order to use the money in advance of their death rather than leave it directly to a beneficiary. F
Posted on Dec-21-2010

339 Planning Ahead for Life Insurance Proceeds
Why did you purchase life insurance? If you're like most people who buy life insurance, you're looking to provide a source of income for someone (e.g., a spouse, parent, or child) after you die. Buying the policy was the first step. Now you'll need to do a little more work to ensure that the money you leave behind lasts.
Posted on Dec-21-2010

343 Life Insurance and Terminal Illness
If you are terminally ill, your life insurance policy is a valuable resource. Not only can you use life insurance to provide adequate income to your survivors for their short- and long-term needs, but you also may be able to receive a portion of the death proceeds from your life insurance before you die in order to pay necessary expenses or to fulfill a dream.
Posted on Dec-21-2010

417 Life Insurance and Charitable Giving
Life insurance can be an excellent tool for charitable giving. Not only does life insurance allow you to make a substantial gift to charity at relatively little cost to you, but you may also benefit from tax rules that apply to gifts of life insurance.
Posted on Dec-20-2010

409 Life Insurance and Estate Planning
Life insurance has come a long way since the days when it was known as burial insurance and used mainly to pay for funeral expenses. Today, life insurance is a crucial part of many estate plans. You can use it to leave much-needed income to your survivors, provide for your children's education, pay off your mortgage, and simplify the transfer of assets. Life insurance can also be used to replace wealth lost due to the expenses and taxes that may follow your death, and to make gifts to charity at
Posted on Dec-20-2010