Saginaw, MI

What is an Annuity? The main benefit of an Annuity is SAFETY

• With A fixed Annuity, and Fixed Indexed Annuity the principal investment is guaranteed. This means that you can never lose your investment. (Not Variable Annuity)
• Every year, any interest is added to the initial invest amount and that becaomes the new guaranteed principal amount..

What is an Annuity? Types of annuities

Depending upon investment goals and need for income, investors can choose an immediate annuity or deferred annuity.

• Deferred annuities allow you to delay the start of your income payments until a later date of your choice
• Immediate annuities are designed to make payments to you shortly after your premium payment is made.

What is an Annuity? Interest Structures of an Annuity

• Fixed
• Fixed index
• Variable (PRINCIPAL NOT GUARANTEED. See below)

What is an Annuity? Some other main benefits of annuity investing

• Tax-deferral: All interest, dividends and capital gains accumulate tax-deferred. Because you do not pay taxes on annuity assets until you access your contract, you may be able to accumulate more than a taxable investment earning the same rate of return¹. Fixed Annuities Income Annuities Fixed Indexed annuities.
• Guaranteed death benefit: Generally, annuities also offer a death benefit, allowing you to pass the annuity proceeds directly to a named beneficiary. All guarantees are based on the claims paying ability of Hartford Life Insurance Company and Hartford Life and Annuity Insurance Company, and do not apply to the investment performance or safety of the investment options.
• Lifetime income: You can choose from a variety of annuity payout options, including payouts guaranteed for the duration of your life.
  
  

What is an Annuity? How an annuity works

The life of your annuity can be broken down into two phases:

1. Accumulation – Any earnings on the contract accumulate tax-deferred.
2. Annuitization – You choose an annuity payout option and begin receiving income.

What is an Annuity? Variable Annuities

I personally do not choose to write Variable Annuities. These are investments that give up the main benefit of the Annuity...Safety. These investments are sold by stock brokers, and licensed securities personnel. I would say that if you want an investment that has all of the risks of a Mutual Fund, then you should invest in a Mutual Fund. As an Insurance Agent, I am very risk averse and I like written guarantees, and in these unstable times guarantees are very important.

Saginaw Michigan Homeowners Insurance - Maury Davis, Certified Insurance Counselor, (989)220-6157, Saginaw, Michigan, Vice President, Future Insurance Agency.

On a Saginaw Michigan Homeowners Insurance, the difference between Replacement Cost Coverage and Actual Cash Value (ACV) loss settlement language found in Saginaw Michigan Homeowners Insurance is very great. If you have a loss to your home the difference could be financially catastrophic to you if you have the wrong coverage.

Replacement Cost Coverage on a Saginaw Michigan Homeowners Insurance policy pays for the repair or replacement of your home due to a covered loss, without depreciation, up to the limit of the policy. (Optional Extended, and Guaranteed R.C. Endorsements increase this amount)

ACV or Market value Saginaw Michigan Homeowners Insurance policies pay for the repair or total loss, MINUS DEPRECIATION.

If you have an ACV policy, this leaves a balance, that YOU PAY, to the contractor doing the repair. That’s a lot of money for the average person. And for a relatively small average difference in the Saginaw Michigan Homeowners Insurance premium between a Replacement Cost policy and an ACV policy. If you saved $300 in premium, you did not make a very good bargain.

With a Replacement Cost policy, all you pay is the deductible. In this example you would pay only $500.00. The Saginaw Michigan Homeowners Insurance company would pay $119,000 to the repair contractor on your behalf.

If your home is on an ACV policy, you will have a much lower dollar limit of coverage on your home. For example your home might have an insured market value of $80,000 but cost $180,00 to build brand new. This is a real world representation. In the partial losses that my clients suffered, the payout would have been: $140,000 - $500 deductible = $139,500 balance - $80,000 ACV coverage limit = $59,500 underinsured.

So the Saginaw Michigan Homeowners Insurance company writes a check for $80,000 on your behalf to the repair contractor and YOU PAY $59,000 to the repair contractor. The loss was not depreciated, but the policy limit was exhausted. Also a real world example. A Replacement Cost policy would have had $180,000 limit and paid the entire loss minus the deductible.

PURCHASE A REPLACEMENT COST POLICY ON YOUR HOME! Do not buy anything less.