An annuity that begins paying out income to you soon after purchase. The amount of time between the purchase and payments may vary depending on whether you chose to receive payments monthly, quarterly, or annually.
A financial professional who is often appointed with multiple insurance companies and sells and services the insurance products they offer.
Individual Retirement Account (IRA)
A personal retirement and savings plan that allows you to set aside money for retirement. An IRA is funded with before-tax dollars: money on which you have not paid any income taxes. You pay income taxes on your IRA when you begin to receive payments.
Insurance Agents help protect individuals against certain risks. Life insurance and fixed annuities are agents’ core products. Some agents also sell personal insurance, including auto, homeowners, liability, and health. If trouble or tragedy strikes, your coverage may provide a cash payout. When you’re ready to retire, products like life insurance and annuities can provide an income for the rest of your life.
The amount of interest credited to an annuity or life insurance policy and is in addition to the premium or premiums paid to the insurance company.
The percentage amount that an annuity or life insurance policy will earn over a stated period of time, as determined by the insurance company.
Irrevocable Life Insurance Trust (ILIT)
A trust that cannot be amended or changed by either the owner or beneficiary of one or more life insurance or annuity policies and states how the money in the policy or policies will be distributed at death.