Annuities are life insurance contracts that provide life benefits and generate income for retirees. Insurance companies sell annuities, which are often contained in pensions, and use actuarial tables to predict life expectancy. Annuity contracts are profitable if annuitants die sooner than expected. Many insurance companies market annuity products to pension providers, while employers prefer mutual […]
Pension annuities in the US provide retirement income for workers, funded by employee and employer contributions. Retirement benefits fall into defined benefit or defined contribution plans, with options for duration and survivor benefits. Payments can be made over a specified period or as a lump sum to the retiree’s estate. Pension annuities in the US […]
Annuities provide lifelong income and are often included in pensions, but many pension providers have switched to less expensive mutual funds or stock plans. Insurance companies sell annuities and use actuarial tables to predict life expectancy. Annuities are profitable if recipients die earlier than expected. Employers are attracted to annuities, but they are expensive to […]
Stock-indexed annuities are contracts between individuals and insurance companies that offer guaranteed income based on the performance of a specific stock market index. They are not considered stocks and offer a guaranteed minimum return, but also have participation rates, caps, and spreads that limit potential earnings. The method of calculating index gains can also impact […]
