If an annuity (fixed or variable) was purchased with non-qualified or after-tax dollars, a portion of each payment is considered to be a tax-free return of principal. The remainder of the payment is subject to taxation to the extent it represents earnings. Current federal income tax law specifies that the taxable portion of annuitized payments […]
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If a contract owner dies in the accumulation phase, a deferred annuity contract will, at a minimum, pay the accumulation value to a named beneficiary. Sometimes the contract may be continued by the beneficiary, with the beneficiary as the new owner. The contractual payout of this benefit varies by policy and can be payable as
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Like many products available in life, annuities are not something you have to buy or invest in, but are an attractive option for someone seeking guaranteed investment growth, income, or protection of principal.* There are 3 basic types of annuities: Immediate, Fixed, and Variable. Immediate Annuity – is an annuity purchased with a single premium
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A variable annuity, while not designed as an estate planning tool, does offer some benefits in this area. An annuity avoids probate, provides flexibility when passing on assets to heirs, and can potentially increase the likelihood of leaving a larger estate in some circumstances. Variable Annuities Avoid Probate—A variable annuity is a contract between an
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