Annuities With Enhanced Deth Benefits

MISTAKE: Overlooking annuities with enhanced death benefits as a viable alternative to costly life insurance policies.

Annuities with Enhanced Death Benefits

Fixed indexed annuities are mainly designed for interest accumulation and providing retirement income. While they are not life insurance policies, they do come with a death benefit. For individuals who prefer not to pay premiums for life insurance yet have savings available, a tax-deferred* annuity can serve as an efficient means to transfer assets to beneficiaries.

Typically, the death benefit in the majority of fixed annuity contracts is equivalent to the cash accumulation value. However, certain annuity contracts offer enhanced death benefits, which can significantly exceed the cash accumulation value of the annuity. Below are key considerations regarding death benefits in fixed annuities:

♦ In contrast to life insurance policies, there are generally no health questions or physical examinations required.

♦ Some contracts may impose a fee for enhanced death benefits, while others provide a built-in enhanced death benefit at no additional cost. If a fee is applicable, it is deducted from the cash value of the annuity, rather than being paid externally as a monthly premium, as is common with most life insurance policies.

 Some fixed indexed annuities offer guaranteed growth or bonus growth for an enhanced death benefit

Could an annuity enhance the death benefit for your family?
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*Please note that we do not provide tax advice, as we are not tax advisors.

Refer to our Professional Disclaimer for more information.