To begin pulling income from an annuity. When it’s time to annuitize, the insurance company may make several options available to the annuitant. Depending on financial need and life situation, he or she may choose to take lifetime payments or payments for a certain period of time only. The insurance company may also make this … Read more
The process by which you convert part or all of the money in a qualified retirement plan or non-qualified annuity contract into a stream of regular income payments, either for your lifetime or the lifetimes of you and your joint annuitant. Once you choose to annuitize, the payment schedule and the amount is generally fixed … Read more
The person who receives the benefits of an annuity or pension. Also sometimes known as the “beneficiary.” The annuitant can be either the contract holder who purchases the annuity or someone else that person names as the receiver of benefits. If it’s the contract holder, then when the annuitant dies, the proceeds of the annuity … Read more
Also known as the “net amount at risk” or NAR, this term refers to the difference between a permanent life insurance policy’s face value and the cash value it has accrued to date. For example, if a policy’s face value is $200,000 and its cash value is $125,000, the amount at risk represents the difference, … Read more
Evolved from the AMBAC Insurance Corporation in 1985, the American Municipal Bond Assurance Corporation is one of the largest insurers of municipal bonds in the United States. A municipal bond is issued by a city, county or state government to finance its operations or projects. Municipal bonds are tax-free investments that help raise the money … Read more
A type of insurance policy that covers claims from any peril not specifically excluded in the contract. This kind of plan is the exact opposite of another kind known as “named peril coverage,” which instead covers losses from only those events spelled out in the policy. All-risk coverage is a more comprehensive type of insurance plan that … Read more
An insurance company representative who helps individuals, families and/or businesses choose the right insurance policies to meet their needs and protect their finances. Agents sell one or more types of insurance, such as property and casualty or life and health. Some represent and are employed by only one insurance company, and those agents are referred … Read more
Any insurance company licensed and authorized to sell insurance in a particular state. “Admitted” carriers belong to the Insurance Guaranty Fund in the states where they offer coverage. These funds protect policyholders in the event an admitted carrier encounters financial hardship or becomes insolvent, much the same way the Federal Deposit Insurance Corporation protects consumers … Read more
A person hired by an insurance company to evaluate insurance losses and settle the claims that result. At the time a claim is filed, it’s the adjuster’s job to determine to what degree the insurer is liable for the damages so the insurer can subsequently pay the policyholder for the insured portion of the damages. … Read more
A type of life insurance policy that allows the policyholder to vary coverage based on needs. Some of the details that may change with an adjustable rate plan include variables such as the policy’s face amount, coverage period and premium. The advantage of adjustable rate insurance is that, when a family is young and growing, … Read more