life insurance alternatives

Traditional life insurance often denies coverage to individuals with certain health conditions, making it challenging for those with medical issues to obtain affordable coverage. Annuities bypass medical underwriting, allowing individuals to provide a financial legacy regardless of their health status.

Unlike certain life insurance products, fixed-indexed annuities allow your money to grow during good market periods without risking the principal during downturns. This balance of growth and security can create a solid foundation for a financial legacy.

The death benefit within certain annuities are based on the annuity’s Benefit Base, a value that grows over time depending on the annuity’s performance and any applicable benefit riders. This Benefit Base is used solely for calculating the death benefit and has no cash surrender value. Here’s how it works:

1. Benefit Base Growth: The Benefit Base can grow over the annuity’s accumulation period, giving beneficiaries a larger potential payout in the event of the annuitant’s death.
2. Legacy Assurance: Since this is a guaranteed feature, it ensures that a value will be available for your beneficiaries, making it a dependable legacy tool.

Having flexible payout options for beneficiaries can be particularly useful in meeting different financial needs.

• Lump-Sum Payment: Beneficiaries can choose a lump-sum payout, which is based on the annuity’s Accumulated Value. This option provides immediate access to funds but may come with income tax implications.
• Structured Payments: Alternatively, beneficiaries can select to receive payments over a period of up to 5 years, providing a more predictable income stream.
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Choosing the payout structure that best suits your beneficiaries’ needs can help maximize the financial benefit they receive while reducing potential tax burdens.

The Agility product offers a fixed indexed structure, ensuring that the annuity will not lose value due to market downturns. This makes it a stable option for those looking to pass on assets without risking exposure to market volatility.

Most annuities includes an income rider that may grow the Benefit Base, potentially increasing the overall value of the death benefit. This can create a more substantial legacy while also benefiting your retirement income needs if you choose to activate the rider during your lifetime.

While annuities can serve as a strong alternative to life insurance, there are some important factors to keep in mind:

• Tax Implications: Unlike life insurance proceeds, annuity death benefits are typically subject to income tax, which may reduce the net amount received by beneficiaries. Consulting a tax advisor can help clarify potential tax consequences.
• Surrender Period: Annuities have surrender periods where withdrawals incur penalties. Be sure to understand the terms of the annuity to avoid unexpected fees if you need access to funds earlier.

Annuity provides a flexible, secure way to leave a financial legacy without the need for medical underwriting. With growth potential, principal protection, and multiple payout options, it can serve as a reliable alternative to life insurance for those who face underwriting challenges.