Life Insurance & Annuities

top-any1

Understanding Life Insurance

Your need for life insurance will vary with your age and responsibilities. The amount of insurance you buy should depend on the standard of living you wish to assure your dependents. You should consider the amount of assets and sources of income available to your dependents when you pass away. Social security benefits, available cash and other sources of income and investments may not provide the standard of living you have in mind. Life insurance helps bridge the gap between the financial needs of your dependents and the amount available from other sources, is the amount to be provided by life insurance. Your agent or other financial adviser can help you with these calculations. The Internet, as well as many financial magazines, books and articles are available to help you as well.

What Is an Annuity?

An annuity, by definition, is simply an agreement to make a series of payments of a certain amount of money to a specified party for a predetermined period of time. Annuities also refer to a commercial insurance contract offered by a life insurance company. Annuities are designed to insure the contract owner against the risk of superannuation, which means outliving one’s income. Older investors who run out of money to support themselves face a dire dilemma. Annuities were therefore created in order to mitigate this risk.