Archive for July, 2010

Here is a list of posts on other blogs you might find interesting!

  • Life/Annuity Agent Portals: Current State and Key Issues … – My new report on Life/Annuity Agent Portals has been posted. The report provides an overview of key issues related to deploying and maximizing the benefits of agent and advisor portals, including lists of “must have” and “nice to have” …
  • Preferred Shares & Annuities « PrefBlog – My background is in insurance and mathematics {now retired at 56}. I am intrigued by the perpetual preferred shares offered by quality institutions rated Pfd 1 or 2 {about 12 to 15 issuers}. With the higher yield and the Canadian …
  • Life Annuity – Life Annuities, Lifetime Annuity, Lifetime … – The Life annuity hearkens back to the days before annuities were investment vehicles, when the word annuity simply meant a stream of income payments whose duration matched the lifetime of the recipient. In traditional financial theory, an annuity is a level stream of payments extending indefinitely into the future. In the 19th century, insurance companies began accepting lump-sum payments in exchange for the promise to make lifelong annuity payments to the payee.
  • Variable Annuity – Before the life annuity became a type of investment a some time ago, the word “annuity” merely referred to income payments to be made throughout the …
  • Structured Settlement Annuity – This is commonly referred to as a life annuity, which pays income for ones life or a set period of time. This could be a situation that touches many lives. …

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Life Annuity

After talking to many of your friends, reading and researching about life annuities, you are quite sure that a life annuity is the right investment for you.  Who do you call, where do you start?  Certainly, you will want good references from your friends.  Who did they purchase their life annuity from and are they happy with the agent and the service they have received?

A Life Annuity agent is a type of life insurance agent licensed by the state insurance commissioner’s office. The life insurance industry does not require formal education requirements when hiring individuals, however, most firms hiring life annuity agents will seek those with a minimum of a bachelor’s degree.  Individuals with majors in finance, business or economics are usually given special consideration.  Every life annuity agent must be licensed in each state that he intends to do business.  Licensing requires the life annuity agent to complete a specified number of licensing hours in a classroom environment discussing ethics, annuity principles and fair sales practices.  Once this is completed then the life annuity agent must pass a test that is administered by the state insurance commissioner.  Upon successful completion of this exam the life annuity agent is licensed and will be expected to complete annual continuing education requirements.

Your life annuity agent will work for either an insurance company or a brokerage firm.  Many life annuity agents will also have earned the designations that allow them to provide other financial services such as buying and selling securities and many will offer comprehensive financial planning services, including retirement and estate planning services, some designed specifically for seniors.  Often, life annuity agents will not hold designations in other financial areas so they will work together with a financial planner to ensure that you receive the best advice for both personal financial planning and life annuity needs.  Never hesitate to ask questions so you know exactly what to expect from your life annuity agent.

Technology, specifically the internet, has greatly affected your ability to choose the right life annuity agent.  It is now easier for you to visit websites, review companies and their agents and view pictures and personal biographies of life annuity agents.  Regardless of the life annuity agent’s educational background and designated degrees, it is imperative that your life annuity agent has good interpersonal skills.  You’ve got to be comfortable and the two of you must be able to easily communicate.  Never hesitate to interview two or three life annuity agents before you invest and do not allow yourself to be pressured into buying if you are feeling uneasy.  A life annuity is a long term investment which means you will want a great, long term relationship with your life annuity agent.

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Many people who have some type of annuity investments (fixed, variable or indexed) are not aware that selling annuity is actually possible and is commonly done by many investors. There could be many different reasons why you may want to consider selling annuity investments.

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