Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

Do You Have a Death Benefit Annuity?


By

Opinions on death benefit annuity riders are wide-ranging.  While your monthly payments will be smaller with such a rider, your money is not lost to your family should you die sooner than expected.  When the annuitant dies, any listed beneficiary will receive the annuity’s proceeds.  You can name one or more people, a trust, or even an organization as your beneficiary.  Beneficiaries can take the annuity money in either a lump sum or as periodic payments.  Since many annuities defer taxes, the beneficiary will have to pay taxes on any money earned above the initial deposit.  The IRS gives beneficiaries five years before they have to start collecting their annuity money and paying the corresponding taxes.

There are a lot of annuities that offer a “step-up” on the yearly anniversary date that you purchased the annuity.  Your annuity value would increase to the highest amount it was at on any past anniversary date.  Some annuities guarantee interest compounded annually at 5% to 7%.  There are variable annuity products which offer a combination of both of those benefits, so you would get the greater of the “step-up” or the guaranteed interest.  If you happened to die at a time when your annuity was down, your beneficiaries would receive the highest anniversary or interest rate amount from your annuity.  Death benefits typically cost between .05% and .50% in yearly expenses.

For more information about the product mentioned in this article contact us here:

Newest Blog Posts

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help.

Broker
Newsletter
Hidden

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of AFYI Holdings Group, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. AFYI Holdings Group, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).