Brad Liebe is a Fort Myers, Florida-based financial executive who coordinates with retirees in providing health care and insurance solutions that enable them to achieve comfortable lifestyles. Among the coordinated products Brad Liebe offers are long-term care, Medicare supplemental insurance, and annuities.
Annuity products represent contractual arrangements through which insurers receive upfront premiums in exchange for future payments. This arrangement provides retirees with a source of guaranteed income that helps avoid the volatility of market swings.
There are many types of annuity products available, including immediate annuities, through which insurance companies begin providing payments immediately after receiving the lump sum principle. Interest rate sensitive, they provide significantly larger payments when the rates increase.
Deferred income annuities are similar, except that the payouts begin when a specified age is reached. They are commonly used as a way of minimizing longevity risk, as the supplemental income may kick in at age 80 or 85, when it's most needed. Because of the deferred nature of the product, with many holders not surviving to receive substantial payments, the payout is often much higher, although it is susceptible to interest rate fluctuations.
As mentioned, one downside is that such products are typically based on the lifespan of the beneficiary, which means that the annuity premium can be lost in cases of earlier than expected death. One way to avoid this is to set up a case-specific insurance rider for the contract, which can be provided for a premium.
Annuity products represent contractual arrangements through which insurers receive upfront premiums in exchange for future payments. This arrangement provides retirees with a source of guaranteed income that helps avoid the volatility of market swings.
There are many types of annuity products available, including immediate annuities, through which insurance companies begin providing payments immediately after receiving the lump sum principle. Interest rate sensitive, they provide significantly larger payments when the rates increase.
Deferred income annuities are similar, except that the payouts begin when a specified age is reached. They are commonly used as a way of minimizing longevity risk, as the supplemental income may kick in at age 80 or 85, when it's most needed. Because of the deferred nature of the product, with many holders not surviving to receive substantial payments, the payout is often much higher, although it is susceptible to interest rate fluctuations.
As mentioned, one downside is that such products are typically based on the lifespan of the beneficiary, which means that the annuity premium can be lost in cases of earlier than expected death. One way to avoid this is to set up a case-specific insurance rider for the contract, which can be provided for a premium.
