GET CONTRACTED
Edward@Croweandassociates.com
Call us: 1.203.796.5403
Crowe & AssociatesCrowe & Associates
  • Home
  • ABOUT
  • Sales Blog
  • Sales Tools
    • Online enrollment
      • Connect4Medicare
      • Sunfire
    • Quote and comparison site
    • Application Processing
    • Free Medicare lead program
    • Agent website
    • Predictive dialer
  • Free Leads
  • Products
    • Medicare Plans
    • Life Insurance Plans
    • Final Expense Insurance
    • Long Term Care Insurance
    • Fixed and Indexed Annuities
    • Healthshares
    • Dental and Vision Plans
    • Other Products
  • Training Webinars
  • Contact Us

Blog

Home Archive by category "annuity"
What is an Annuity

What is an annuity

By Ed Crowe | Annuities | 0 comment | 14 September, 2017 | 1

 What is an annuity

This is a more complicated question than one might realize. So what is an annuity?  The standard definition from the dictionary is listed below but it does not really help to answer the question.

an·nu·i·ty
əˈn(y)o͞oədē/
noun
noun: annuity; plural noun: annuities
  1. a fixed sum of money paid to someone each year. In most cases, payments are for the rest of their life.
    “he left her an annuity of $1,000 in his will”
    • a form of insurance or investment entitling the investor to a series of annual sums.
      “an annuity plan”

Answer:

Annuities are a type of investment account clients typically use either for retirement savings, conservative account growth or to generate regular income payments in retirement. Annuities are insurance contracts, the issuing insurance company provides basic guarantees in the contract, this depends on the type of annuity.

There are many types of annuities, and the right one for each person depends on their situation and goals.

Looking for guaranteed income in retirement

Consider income annuities or annuities with guaranteed income riders:

Income annuities can provide a stable and predictable source of retirement income. With these types of annuities, you surrender access to a lump sum of money in exchange for a stream of income that’s guaranteed for life. Payments from income annuities can start as early as 30 days from the day you sign the contract.  Although, the more competitive income annuities require a much longer gestation period ranging all the way up to age 85.

Fixed or Variable Annuities with guaranteed income rider:

 The majority of annuities on the market today offer a guaranteed income riders.  Riders will provide a set amount of income at a future date determined by the insured.  Income riders are predictable and can be illustrated to show how much guaranteed income will be paid out for life at any given start date.  Most income riders have an annual fee that is deducted from the overall account value of the annuity. Some income riders will increase the benefit base (number used to determine the income payout) on a guaranteed annual basis.  You can find past income riders with 8% to 10% compound roll ups for 20, 30 or sometimes 40 years.  The current interest rate environment has lowered the guarantees in most products income riders over the past few years.

Trying to conservatively grow your nest egg.

Consider either a Variable or fixed indexed annuity for safe growth.

 Most growth oriented annuities will provide minimum growth guarantees and also have lock in features which set a new minimum value every year.  Some Variable annuities can go below your initial value if the market based accounts they use have negative returns.

What is an annuity; what to consider when making a choice:

Understanding the basics of an annuity is one thing.  The bigger step is knowing the details and understanding which annuity is best for your situation.

  • What the fees and charges will be. Fees and charges vary greatly from company to company and also depends on the type of annuity.
  • Who issues the annuity. Annuities are backed by the strength of the company that offers them. Take a look at the financial rating of the company you use.
  • How do you want your annuity invested. You can go with a fixed annuity (called a MYGA), an indexed annuity or variable annuity.  In general the fixed annuity is a set rate but will often have a lower yield.  Fixed indexed annuities have potential for more growth but can also do little to nothing in bad years.  A variable annuity can either grow substantially or have negative returns.  This will depend on market performance.
  • How much flexibility you need. Annuities have surrender periods.  The surrender periods range from 3 years up to 15 years.  This depends on the product as well as state.  Choose one that fits your needs.

If you have more questions on the topic, either give us a call at 203-796-5403 or email Edward@croweandassociates.com to get answers.

For more information; you can visit our website croweandassociates.com.

Best Growth Annuities For 2015

Best Growth Annuities For 2015

By Ed Crowe | annuity, Latest news | Comments Off on Best Growth Annuities For 2015 | 25 March, 2015 | 0

Best Growth Annuities For 2015

Companies are offering a number of fixed indexed annuities with uncapped strategies for 2015.   Given the similarities between the various uncapped options it can be hard to tell which companies are offering the best growth annuities for 2015.  Although the options with uncapped growth annuities seem endless, they all are relatively similar.  The key if identifying the common components of indexed annuities and comparing them between the companies.  A list of the key areas is provided below. Read more

Annuity Income Rider: Payouts Can Differ

By Ed Crowe | Annuities | Comments Off on Annuity Income Rider: Payouts Can Differ | 10 March, 2015 | 0

Annuity Income Rider:  Payouts Can Differ

When purchasing an annuity with an annuity income rider, it is important to understand that payout amounts can differ based on the issuing company’s policy. Because payouts can differ between companies, it is important to choose the right company before you invest your money. Below are payout overviews from both Nationwide and Genworth so you can compare the two.  This way you can make a more informed decision. An informed consumer is a smart consumer.  We want to give you any and all the information you need to help you feel comfortable with your choices.

Nationwide’s  annuity growth is based on interest earned.  However, once income starts that income amount remains in effect for life.  Therefore, a 55 year old making a $100,000 deposit, taking income in 10 years would receive $9,905 annually.  This income would start from age 65  and continue through age 75. These payments would add up to a total payout of $108,955.

Read more

MassMutual Care Choice One

MassMutual Care Choice One

By Ed Crowe | annuity | Comments Off on MassMutual Care Choice One | 5 February, 2015 | 0

MassMutual Care Choice One

Here is some important information about MassMutual Care Choice One. The Choice Care One is a very versatile plan it offers clients many great options.   Mass Mutual has rolled out a single deposit, Long Term Care product that provides both Long Term Care as well as Life Insurance.  This product also has a guaranteed cash value build up.  All these options are provided by Mass Mutual to their clients in one policy called, Care Choice One.  In fact, unlike other similar products, the MassMutual product guarantees an increase on all benefits over time.  This is a single deposit product this means it is intended for lump sum roll-overs only.   There is an illustration for a 60 year old male depositing 100K attached here for your review.  Just click the following link.   Care Choice One Ilustration – MassMutual

Read more

Americo LibertyMark 15% Bonus Annuity

Americo LibertyMark 15% Bonus Annuity

By Ed Crowe | annuity | 0 comment | 27 August, 2014 | 0

Americo LibertyMark 15% Bonus Annuity

Americo LibertyMark 15% bonus annuity.  Until recently, the state of Connecticut has given approval to very few bonus annuities.  Equitrust had the largest bonus at 6%.  Although, now there is a 13% bonus product in CT with the approval of the Americo LibertyMark annuity. (Please Note:  The bonus is 15% in many other states).   The product comes with both a 7 year term as well as a 10 year term version.  This means that you would need to invest your money into the product for either 7 or 10 years before you could obtain the entire amount without a surrender charge.   In addition to the 13% bonus, LibertyMark has one of the stronger interest crediting methods available with a 2 year S & P annual point to point at 80% or 60% participation. This depends on the option that you select.

 LibertyMark

Structures their bonuses in a unique manner.  LibertyMark pays you the 13% bonus out at two different times.  When yo make your initial deposit you will receive a credit of a 5% bonus.  This means that the remaining 8% is credited at the end of year 10 on the total accumulation value of the product.  As an example, assume someone puts $100,000 in the product and it grows to $180,000 at the end of year 10.  The 8% bonus would be based off the $180,000 which would equal a bonus of $14,400.00  As with all fixed annuities, the principal investment is protected.   This means that the return in a given year can not go below 0% even if the market is down.

Please contact us if you have questions or would like to learn more.  You can either call our office at 203-796-5403 or email us at Edward@croweandassociates.com.  We are here to help you with all your insurance or investment needs.

CLICK FOR AMERICO LIBERTYMARK BROCHURE

CLICK FOR LIBERTYMARK STATE AVAILABILITY

Income Annuity Information

Income Annuity Information

By Ed Crowe | annuity | 0 comment | 12 May, 2014 | 0

Income Annuity Information

 

We have provided you with some Income Annuity Information in this post.  The term “Income Annuity” is a catch all.  We use this term for any annuity that produces guaranteed future income.  There are three types of annuities that can create guaranteed future income.  These annuities are either a SPIA (Single Premium Immediate Annuity), a deferred income annuity or an annuity (fixed indexed or Variable) with an income rider.  All three have different sweet spots which can help someone determine when to use each type.  A review of each is provided below.

  • SPIA-

  •   A single premium deferred annuity creates immediate income that will last for a pre defined amount of time.   You can use the annuities to provide income for one person for life, or a couple for both lives.  Although, you can also use it for a set amount of time such as 20 years.   The biggest thing to be aware of is that the insured no longer owns the lump sum.  The insurance company and/or bank takes control of the lump sum of money.  They take the money in return for paying a guaranteed income stream that will not change.   If someone puts $300,000 in a SPIA with a life with 20 years certain option, this will guarantee payment for life.  In the event that the investor dies prior to receiving payment for  the 20 years, the beneficiary will receive the income until they have received the total 20 years of payments.   The trade off is that the insured no longer has access to the lump sum of money.
  • WHY WOULD SOMEONE USE THIS?-

  •  A SPIA will pay out the higher ratio of guaranteed income than the income rider or the deferred income annuity.  This is most useful for someone that has other assets and can afford to dedicate a portion of assets to create a guaranteed income stream.  The lump sum is no longer available so it is important to have other liquid assets if you decide to use this option.
  • Deferred Income Annuity-

  • The product is very similar to a SPIA. The difference is that income does not start immediately.  It starts at a pre determined future date.  The longer the deferral the higher the future income payment is.  You can calculate payments on a guaranteed bases.  The insured will know exactly how much they will get at that future date.
  • WHY WOULD SOMEONE USE THIS?-

  • If the insured has a need for future income, this is a good way to create an income stream without having to worry about market performance or  anything else.  They just dedicate the amount of money they need and then they can be sure income will start when it is necessary.  The flaw is that the future  income payout is not competitive with the future income payout that some other riders create.
  • INCOME RIDER-

  • When an income rider is attached to a fixed indexed annuity or a variable annuity it allows the insured to create a future income at any year they choose.  They do not need to pre determine the year income will be taken and they can see exactly what the income would be in any given year.  They also maintain control over the lump sum investment and can continue to accrue interest on the money.  The income payout exceeds that paid by the Deferred Income Annuity.  It is critical however, that you pick the most competitive company, as the guaranteed payout amounts vary tremendously.  This depends on the company that you choose to  use.  Additionally, there is an annual fee on most income riders.
  • WHY WOULD SOMEONE USE THIS?

  • If someone is looking for the highest deferred guaranteed income payment, the right income rider is the best option.  In fact, you would also maintain control of the lump sum investment if you use this approach.

CLICK HERE IF YOU NEED A QUOTE

Risk Free Investments

Risk Free Investments

By Ed Crowe | annuity | 0 comment | 12 May, 2014 | 0

Risk Free Investments

In this post we explain some things about Risk Free Investments.  There are a number of risk free investments (no risk to principal) available to those looking for safe/conservative ways to earn interest on investments.  While it is smart to be conservative when approaching retirement or in retirement, it can be difficult to keep up with inflation only using strategies without market risk.  Money markets, CD’s and Annuities are three popular choices of focus in this post.

Money Markets

While Money Markets are safe and a convenient place to keep cash, they are simply not going to yield any type of meaningful return.

Certificates of Deposit

While better than a Money Market return, CD’s are still averaging less than 2% on a 5 year commitment nationally.  They are certainly safe but will not be likely to keep pace with inflation.  Market Linked CD’s may be a better choice for someone that is looking for the FDIC backing provided by CD’s.  Market linked CD’s provide principal protection but have a variable return that can range from 0% up to 8% or 9% depending on the terms and bank.

There are a number of different crediting strategies used but one of the more common ones is the “Basket of Stocks” approach.  The bank picks out a group of stocks (usually between 5 and 15).  If the overall portfolio is level or positive for the year, you will pay the stated/declared interest rate.  If there is an 8% interest rate declared, that is the amount you would pay for that year.  They repeat this process for the duration of the commitment.  If an 8% declared rate product is on a 7 year surrender schedule, the client will receive 8% for every year the account is positive.  They will receive 0% for years it is negative.   As a result, Market CD’s can be a good approach for the more conservative investor.

Annuities-

Annuities can be a good approach but you must do a great deal of research before you purchase one. There is a big difference between a SPIA, a Fixed annuity and an Indexed Annuity.   A fixed annuity (Also called a MYGA) can offer slightly higher rates than CD’s with the same term years. As of this post, the best 5 year fixed annuity is at 3.4%.

A SPIA (single premium immediate annuity) 

This product is based on your income and is not appropriate for any type of accumulation. Fixed Indexed Annuities can be a great option for account growth.  Although, they can also be a poor choice  this depends on which company and product you choose.  Fixed Indexed Annuities use market indexes (usually the S & P 500) to determine the amount of interest to credit to accounts.

They have crediting methods that provide a portion of the index growth to the account.  This is where there can be a wild difference in companies.  As an example:  One carrier currently credits the gain in the S & P 500 per year up to  a cap which is currently at 2.75%.  This means the most a client can get in a year is 2.75% return regardless of how high the market goes.  There is another carrier that credits 75% of the gain of the S & P over a 2 year period.  This would have provided over 22% interest  to an account in the 2012 to 2013 time period.   Obviously, it is important to choose the plan with the best crediting methods.  Because if you choose the wrong one it can cost a bundle.

CLICK HERE FOR A QUOTE

Is An Annuity Income Rider A Good Deal?

Is An Annuity Income Rider A Good Deal?

By Ed Crowe | annuity | 0 comment | 5 April, 2014 | 0

Is An Annuity Income Rider A Good Deal?

Is an annuity income rider a  good deal?  Annuity income riders are available on both fixed and variable annuities.  Although most people do not understand them very well, income riders are not that complicated.  Although companies have different bells and whistles on them, income riders are all very similar regardless of the company offering them.

The basic concept of an income rider is that they are a product investors use to create a future income stream.  Investors can determine their income down to the dollar at any future date.  This makes them very predictable.  An example is the best way to describe an income rider.

(Example)-

A person decides they would like to have a future income stream to supplement their retirement income they receive from Social Security and a pension.  They decide they have $250,000 that they can dedicate to future income.

The investor puts $250,000 into an income rider.  The income rider will show them exactly how much lifetime income they will be able to take in the future.  They can choose to start collecting income in any year they would like.   Although, once they start collecting income, the amount they receive every month will never increase.   The income will payout for life but their initial investment will erode over time.  When the $250,000 runs out they will still have the income payment however.

The positives of an income rider are the following…..

  • Can predict future income right down to the exact dollar in any given year.
  • This income has a guaranteed payment. The longer you wait to turn it on the more it will pay out for life.
  • Market conditions have absolutely no effect on the deferred income increase on the rider.
  • You will still have access to the lump sum investment even after you start to receive income payments.

The negatives of an income rider are…..

  • Once you start to take payments your account will never increase.
  • There is an annual fee for the income rider which your provider deducts from the account value (The $250,000 in the example) of the investment.
  • The account value will steadily decrease  for every year the income rider pays you.

Income riders can be very useful if they are used for the right purposes (Generating future guaranteed income).  They can also be a terrible investment if used for the wrong reasons.  Many will argue that a larger future income stream can be created using other methods but they can not do it on a 100% guaranteed basis like an income rider can.

CLICK HERE FOR MORE INFORMATION OR QUOTES

 

 

 

Annexus BCA Annuity

Annexus BCA Annuity

By Ed Crowe | annuity, Latest news | 0 comment | 3 April, 2014 | 0

Annexus BCA Annuity

The Annexus BCA annuity is a fixed indexed annuity.  This is a specialized offering from Aviva.  Unlike a traditional fixed annuity that offers a fixed interest rate for a set number of years.  The Annexus product uses an interest strategy based on performance of the S & P 500 while it still provides a 100% principal guarantee.

The idea behind the Annexus product is that it provides  an opportunity for superior returns compared to either a bank CD or fixed annuity while it still provides a guarantee against loss.

It attempts to accomplish this with a unique interest strategy. The following description intends to give clients a general understanding of the product.  Returns are based on the S & P 500 using a 2 year point to point strategy.  The gain in the S & P over a 2 year period is used to determine the return provided to the client.  After 2 years, the point to point is reset and another 2 year term will begin.

Not all of the return is provided however.  40% of the funds that clients place in the account are in a fixed account that yields a declared interest rate.  This leaves 60% of the money in the S & P.  Some of that gain has a further depression because of the annual spread. “Annual Spread” is an amount of the overall return the company keeps prior to giving the reminder to the client.  The spread ranges from 1% to 2% this amount depends when  the client purchases the product.

Given the above details:

The Annexus product is certainly going to lag behind the standard S & P return.  The fact that it will allow no less than a 0% interest credit in a negative 2 year cycle helps the performance of this product.  The bottom line is that the product certainly does protect against poor market timing with the 0% floor but it will also provide lower returns than the S & P in positive years.

An example of returns from the Annexus product vs. the S & P 500 is provided here. Annexus BCA 12 Annuity

CLICK HERE FOR ANNUITY QUOTES OR ADDITIONAL REQUESTS

Please contact us if you have any questions about either investments or insurance.  You can reach us either by phone at (203)796-5403 or by email at admin@croweandassociates.com.

 

Bank CD Compared To Fixed Annuity

Bank CD Compared To Fixed Annuity

By Ed Crowe | annuity, Latest news | 0 comment | 3 April, 2014 | 0

Bank CD Compared To Fixed Annuity

How is a bank CD different from a fixed annuity?  In this post we will talk about Bank CD Compared To Fixed Annuity.  They are more similar than you may think.  Here is a review of similarities and differences.

  • Both CD’s and Fixed annuities offer a fixed interest rate for a set number of years. Terms such as 2, 3,5,7 and 10 years are common for both.   CD will provide shorter terms than an annuity as most fixed annuities will not offer a term less than 1 year.
  • Interest rates have a guarantee for the full term on both products.  Once the investor reaches the term, they  may take the money out without any other obligation
  • Fixed annuities tend to have larger penalties for taking the money out early.  While a CD will often just take the interest you gain as a penalty for early termination (taking money before term is over).   Fixed Annuities tend to charge penalties above just the interest you gain.   Both however are free of any penalties if the investor meets the full term.
  • Most annuities will allow investors to take out 10% of the account value penalty free, per year, before the end of the investment’s term.
  • Bank CD’s are FDIC insured, while Fixed Annuities are not.  Instead annuities are backed by the Guarantee Association of the state of issue.
  • In general, a fixed annuity will offer a higher fixed return than a CD.  For example, the best current (As of April 3rd, 2014) 5 year fixed annuity rate is 3.2% for 5 years vs. the highest posted CD rate of 2.27% (Bankrate.com)

CLICK HERE FOR RATES OR MORE INFORMATION

Crowe and Associates is here to help you with all of your investment needs.  If you have questions, please either call us at (203)796-5403 or email us at edward@croweandassociates.com.  Also, feel free to ask us about insurance coverage.

12345

Categories

  • Annuities
  • annuity
  • Brokers
  • CD rates
  • Dental
  • Dental insurance
  • Disability
  • FDIC insured CDs
  • Fixed interest rates
  • General Articles
  • Group Health Insurance
  • Individual Health Insurance
  • Investments
  • Latest news
  • Life Insurance
  • Long Term Care
  • Medicare
  • Medicare A and B benefits
  • Medicare Advantage Plans
  • Medicare compliance
  • Medicare Drug Coverage
  • Medicare Supplements
  • Over The Counter benefits
  • phone and home Medicare sales
  • Retirement Income
  • Voluntary Benefits

Recent Comments

  • Rachel on When is The Medicare Advantage Dis-enrollment Period (MADP)
  • Kathy Stark on United Health Care OTC Catalog
  • Tracey Klee on UHC 2022 OTC Catalog
  • Brenda Brogan on Aetna OTC 2023
  • terry zehring on Anthem 2022 OTC catalog

Social Icons

Archives

  • January 2023
  • December 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • February 2022
  • December 2021
  • October 2021
  • February 2021
  • January 2021
  • February 2020
  • January 2020
  • October 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • March 2015
  • February 2015
  • September 2014
  • August 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • September 2011
  • July 2011
  • June 2011
  • April 2011
  • January 2011
  • August 2010
  • April 2010
  • September 2009
  • August 2009

Recent Posts

  • Insurance Live Transfer Leads
    27 January, 2023
    0

    Insurance Live Transfer Leads

  • MetLife dental NCD
    24 January, 2023
    0

    MetLife dental NCD

  • ConnectiCare OTC 2023
    18 January, 2023
    0

    ConnectiCare OTC 2023

  • $35 insulin list
    18 January, 2023
    0

    $35 Insulin List

With licensed sales professionals in both the investment and insurance fields, the experienced and knowledgeable team at Crowe & Associates can tend to your various needs.

Latest News

  • Insurance Live Transfer Leads

    Insurance Live Transfer Leads

    Insurance Live Transfer Leads With Crowe and Associates, agents can access insurance

    27 January, 2023
We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800 MEDICARE to get information on all options.

Follow Us

  • Follow Us on LinkedIn
  • Find Us on Facebook
  • Watch Us on YouTube

Subscribe to our newsletter

Edward K. Crowe & Associates LLC BBB Business Review
  • Home
  • About
  • Agents
  • Quote
  • Retirement
  • Services
  • Blog
  • Contact
Copyright 2023 Crowe & Associates | All Rights Reserved |

Insurance Agency Website by Stratosphere

  • Home
  • ABOUT
  • Sales Blog
  • Sales Tools
    • Online enrollment
      • Connect4Medicare
      • Sunfire
    • Quote and comparison site
    • Application Processing
    • Free Medicare lead program
    • Agent website
    • Predictive dialer
  • Free Leads
  • Products
    • Medicare Plans
    • Life Insurance Plans
    • Final Expense Insurance
    • Long Term Care Insurance
    • Fixed and Indexed Annuities
    • Healthshares
    • Dental and Vision Plans
    • Other Products
  • Training Webinars
  • Contact Us
Crowe & AssociatesCrowe & Associates

Online Enrollment- Enroll prospects online without the need for a face to face appointment. Access to all major carriers with the ability to compare plan benefits and prescription drug costs. Link to recorded webinar https://attendee.gotowebinar.com/recording/2899290519088332033

All agents receive a personalized enrollment website. Prospects can use the site to compare plans, check doctors, run drug comparisons and enroll in plans. Agents are credited for all enrollments. Click Here

[contact-form-7 404 "Not Found"]