Do you know what you can actually get from combining a life insurance policy and an annuity? The word annuity itself is somehow complicated, but you know it offers a lot of advantages to certain clients. The niche life insurance along with the products that merged insurance policies with annuity to allow the survival of spouses, it is just like a permanent life insurance policy where in the owner of the annuity needs to pay for the premium to give assurance to the survivor that he/she will be paid.
Life insurance doesn’t really have any cash value. But with the reversionary annuity in the case of the policy holder’s death, his/her beneficiary will get a lifetime income which is definite compared to a lump sum payment. The income payments will then stop when the beneficial died. If he/she dies even before the policy is terminated the premium will then be decreased to not more than 50% compared to life insurance.
“You will be given a well-targeted benefit and it can be in the form of fixed lifetime income that is meant for the recipient of the insurance.” This was revealed by a consulting actuary who is known as Noel Abkemier. “This is just in comparison with level or whole life insurance where in the beneficiary may benefit overtime while the reversionary annuity will then allow you to do more than what the death benefit that is needed.”
There are still other benefits that may also be indicated along with the return of premium rider which an inflation option and this is just to maintain the purchasing power through the years. The combination of life insurance and annuity is the best combination because the contract will require the policy holder to pay for the agreed amount that is also stated in the contract. The insurance company will promise to pay for a regular income for the beneficiary when the investment matures.
The growing demand for life insurance seekers outnumbered those that are not interested. It was revealed by Assurity Life which is right now the only company that offers underwriting for a reversionary annuity. Research will tell you that the long demand for durability or longevity insurance may increase because of the lessening in SSS benefits as stated. “Annuities can be used to maximize pensions for those who are looking for defined pension plans” it is according to Potter too. This is best for retirees who chose a single life payout option.
