Once the death benefit has been paid, it may seem like the policy has done its job and of course in many ways it has. But we believe it is important to share our experience so that your family can make those funds last as long as they need to
Wheeling, IL (Vocus) November 9, 2010
Meeting everyday financial obligations and preparing for future ones requires more financial planning than ever. Beneficiaries of life insurance policies are often left a large sum of money to help pay for some of those expenses, but if not managed properly, that money can run out sooner than intended. Byron Udell, founder of AccuQuote and one of the nation's foremost life insurance and annuity industry expert illustrates ways to create a guaranteed lifetime income stream from life insurance proceeds.
The solution is an annuity. An annuity is a simple contract between an individual and a life insurance company. There are two main types of annuities: immediate and deferred. In an immediate annuity contract, the beneficiary pays the life insurance company an agreed upon sum of money and the life insurance company pays them an income. If elected, the life insurance company will pay a guaranteed income for life. In a deferred annuity contract, the money put into the annuity grows on a tax-deferred basis. As a result, 100 percent of the beneficiary’s earnings grow without having to pay taxes on them until the money is withdrawn. The latter option allows the money to grow much faster.
Additional benefits of an annuity include:
- Securing a home for long-term savings
- A guaranteed interest rate of 3 to 4 percent for five years or longer
- An option that guarantees the money will never run out
In traditional terms, the death benefit is the amount of money paid by a life insurer to a beneficiary when a person insured under the life insurance policy dies.
“Once the death benefit has been paid, it may seem like the policy has done its job and of course in many ways it has. But we believe it is important to share our experience so that your family can make those funds last as long as they need to,” says Byron Udell, founder and CEO of AccuQuote. “We have learned that by not properly managing the death benefit proceeds, even a large lump sum of money can disappear before you know it.”
Interested individuals can contact AccuQuote to learn more about the benefits of creating a guaranteed lifetime income stream from death benefits proceeds. Licensed agents can be reached at 888-314-4455.
AccuQuote helps consumers find the best values in term life insurance by combining instant online life insurance quotes with the personal service of unbiased life insurance professionals who answer questions, identify important issues and make meaningful recommendations. The company offers consumers an extensive selection of life insurance products, including term life, whole life, universal life, accidental death, long-term care, disability and selected annuities. AccuQuote.com has many handy insurance tools, including a term life insurance calculator to help consumers determine their life insurance needs, a glossary of industry terminology, a collection of articles and press releases that cover many life insurance topics and a blog that provides opportunities for discussion on life insurance and personal finance. For additional information or to get free quotes for low cost life insurance, please call AccuQuote at 1-888-314-4455.
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