Skip to main content

Annuities. Good, Bad or just Ugly?


We are regularly asked if an Annuity is a good or bad thing for clients, and like most answers in our business and in life, the answer is, “It really depends!”

At its most basic level, an annuity is a life insurance product designed to pay some level of income to the annuitant.  The investor gives the annuity product life insurance company a certain amount of money, called the premium, and the life insurer agrees to pay the annuitant a certain amount.  These amounts can be monthly, quarterly, annually for life, for a certain minimum period or both.   This is an example of a fixed annuity.  There are also indexed and variable annuities where the value is tied to some kind of stock or bond investments.
There are literally thousands of different annuity products with thousands of variations.  As with any financial product, whether the product is appropriate for a particular client depends on exactly what the client’s needs, sophistication, financial situation and risk tolerance are.

They also typically have steep surrender charges if the annuity is cashed out before a certain length of time.
When considering whether an annuity product is good for your financial goals you should make sure that you fully understand the product and that it is offered by a financially stable and large life insurance company with a long history.
White House Financial & Settlement Consulting helps families live an easier and less stressful life through the proper management of their financial resources.  We do this by acting as our clients’ trusted advisor providing a personal touch customized to the client’s needs!  Please visit our web site at www.whitehousellc.com for more information!

Popular posts from this blog

THANK YOU VETERANS!!! www.whitehousellc.com

Structured Settlements in A Low Interest Rate Environment

We often hear from our plaintiff attorney clients that their clients should not use a structured settlement annuity due to the current low interest rate environment. Their thought is that their clients can do better in other financial instruments such as the stock market. This logic fails to take into the consideration one of the best features of a structured settlement annuity which is its income tax FREE GUARANTEED payments. I am a financial adviser and Certified Financial Planner with over 20 years of experience who can advise clients regarding ALL financial options and not simply limited to Structured Settlement Annuities. I have witnessed MANY high and low interest rate environments and MANY claimants who were going to "get a higher rate of return" outside of a structured settlement annuity who are now OUT OF MONEY! Remember, it doesn't matter what rate of return you are getting if the balance of your investments is ZERO! But don't just take my word for i

LIEN RESOLUTION!

You probably know us best for our Plaintiff Focused Structured Settlement Consulting services.  You may not know that we also help plaintiff attorneys and their clients resolve those nasty LIENS that threaten your hard won settlements through our partnership with PROVIDIO! Please click the link below for more information on our lien resolution services: If we can assist you with your lien resolution or structured settlements please call us at (734) 433-1670 or email  cyril@whitehousellc.com . www.whitehousellc.com