William Penn Life, 2017 (52. évfolyam, 1-12. szám)
2017-06-01 / 6. szám
Moneywise with Bob Bisceglia, National Sales Director Annuity or life insurance? ARE ANNUITIES BETTER than life insurance? I'm often asked to compare the benefits of an annuity to a life insurance certificate or asked which is better to own. Well, the answer is, of course: "It depends." Both annuities and life insurance should be included in your long-term financial plans. While both include death benefits, life insurance covers you in the event you die too soon, while an annuity protects you against living too long. In other words, life insurance provides financial support to your loved ones if you should die before your financial obligations to them are met, while annuities guard against outliving your assets. The chart below compares the two types of life insurance -- term and whole life -- with two types of annuities - deferred and immediate. I have discussed the differences between whole life and term insurance in previous issues. When discussing annuities, the term "deferred" refers to the time during which you are accumulating principal and interest, while the term "immediate" refers to the time in which you convert your deferred annuity into an income stream using one of many income options that are available at that time. As you can see by the comparisons in the chart, life insurance and annuities both fill specific roles and both have a place in your plan, depending on your personal goals. Let's take the comparison one step further and compare the benefits of an annuity to those of WPA's Single Premium Whole Life (SPWL) certificate. While both provide an immediate death benefit and tax-deferred growth, the Single Premium Whole Life, for those that qualify, might provide a greater benefit than an annuity in the long run. We have what many believe is one of the best SPWL plans on the market today, and I'm often asked to compare the internal rate of return on the SPWL versus WPA's 5- and 9-year annuities. Elere's one example using our 5-year "High Five" annuity. For this example, we'll say you are a non-smoker, age 65, in generally good health, and have $50,000 that you're considering to deposit. Both the annuity and SPWL 6 0 June 2017 0 WILLIAM PENN LIFE
