Majority of I.I.I. Web Visitors Know Their Annuities
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April 25, 2007
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Audio File and Transcript
Click here to download the MP3 file.
“The main reason for buying an immediate annuity is so that the buyer doesn’t outlive his or her income. Many people today are living much longer than they would have expected and with advances in medicine and better personal health habits, such as a healthier diet and regular exercise, they might live to even more advanced ages in the future. So making your income last a lifetime may be more challenging than ever.”
“There are also tax advantages to immediate annuities because the buyer only pays taxes on the portion of the payments which are derived from investment income. Moreover, the buyer of an immediate annuity need not pay taxes on the principal, that is the monies used initially to buy the annuity, because those funds have already been taxed.”
“Immediate annuities allow an individual to convert a lump sum of money into an immediate source of income, with payments generally starting about a month after the immediate annuity is purchased.”
“The main purpose of deferred annuities is to accumulate funds for ultimate payout in retirement.”
"This is Steve Weisbart, vice president and economist from the Insurance Information Institute."
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