Florida Variable Annuity Guide
From the state of florida:Quote from:Florida Statutes /624.602.
"The transaction of life insurance includes also the granting of annuity contracts, including, but not limited to, fixed or variable annuity contracts; the granting of endowment benefits, additional benefits in event of death..."
Variable annuities are insurance contract in which, at the end of the accumulation stage,
the insurance company guarantees a payment. The income
payments can vary on the performance of the managed
portfolio. The thought behind the basis of the Florida annuity contract is to generate a source of stable income that you cannot outlive.
When the insurance companies introduced the idea of a variable Florida annuity
based pay out, this changed the payments from a fixed amount to a
variable amount. Please keep in mind that most contract have a minimum
guaranteed payment varying from 4.5% to 8.3% depending on your age.
At the same time,the Florida annuity contract that makes utilization of a
variable portfolio can involve some degree of risk. Just as the
fundamental of the investment may amplify in value, there is also the
possibility that the market will go threw a downturn. However, it must
be noted that any kind of investment would bear several degree of risk.
Here are the Latest riders update:
Metlife (5%) has an enhanced
death benefit that will pay your beneficiary the highest yearly value of your
account you've ever had for as long you have a $1 in the cash account.
Lincoln Financial (4-6.8%) has a feature that will pay you up to 70% of tax
free income.
Allianz (4-5%) will raise your income percentage even thought your account
didn't go above your step-up. They have another great feature. For example : If
had an annuity with them for last 10 years and you started with $100,000 and in
2007 the account was $160,000, the account today is only $130,000 and you want
to take your money today...You would be able to get the $160,000 cash.
Transamerica (4-6%) will double your income if you enter an assisted living
or nursing home.
Prudential (4-6%) will double your income if are in need of long term care.
When entering into a variable Florida annuity contract, there is the choice of
selecting from different payment schedules. Once the conditions
of the contract are fulfilled, the income may begining either monthly,
quarterly, or on annual basis, but generally not before age 60. Many
providers of this type of financial instruments will provide supporting
information to enable the investor to better understand what the amount
of income he or she will receive.
Variable annuities are intended primarily as long term retirement
savings vehicles. Many people purchase annuities because they want
their portfolio to accrue tax-deferred. The variable Florida annuity product
allows for a broad variety of investment choices. These choices usually
consist of portfolios that are invested in money markets,bonds,stocks
or a combination of all three.
Variable annuities also have numerous features of other types of
annuities. These include: security features that can insure against
market down side for an extra charge, sharing in the growth potential
of the stock market, flexible of income choices, and potential for a
growing stream of income. There are also tax benefits including tax
deferral, chance for a fixed rate return for an expected income stream.
Lastly, there is liquidity, which permits for withdrawals within a
range,so as to maintain a definite life time income.
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