Learn more about life insurance and annuities and the benefits they can provide for both consumers and business owners.
Many Americans do not have adequate life insurance coverage, which is a sobering fact. According to a State Farm report dated September 1, 2010, 68 million people are uninsured, though the number could be much higher.
Many people who have insurance are unaware of the benefits their policies can provide them throughout their lives.
According to Steven Weisbart, chief economist at the Insurance Information Institute, an annuity is a payment made by an insured person for life insurance that is paid back to the insured over time. On their website, the III provides much more detailed information about annuities.
In its most basic form, an annuity is a contract to make a series of payments over a set period of time.
“Life insurance benefits can be taken in the form of an annuity,” Weisbart explained. “An annuity is a contract that pays a series of payments over a set period of time.” All annuities include some form of tax deferral.”
Furthermore, in some annuities, the amount paid in as a single premium or in periodic payments is considered “before tax” money. Weisbart goes on to say that the tax on the income that provides the premium is also deferred until the annuity is withdrawn.
According to State Farm, for business owners, life insurance cash values can be assessed and used to purchase the shares of a retiring business partner. A company owner can also use life insurance to retain talented employees by incorporating it into a retirement or bonus package.
Another benefit, according to State Farm, is that a parent or grandparent can use the accumulated cash value of their life insurance policy to help pay for their children’s or grandchildren’s college expenses.
Investing in life insurance and annuities benefits both consumers and business owners. Call LifeQuotes today at 1-800-556-9393 to find out how you can reap the benefits of life insurance and annuities for yourself!