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A number of companies offer a variety of fixed annuities in Connecticut which often offer higher interest payouts than a standard bank CD.  The term “fixed annuity” is very generic so I will describe the different types in this post.  The type of fixed annuity that will work best for you depends entirely on your situation and what you are trying to accomplish.  Lets move on to a description of each type.

Single Premium Immediate Annuity (SPIA)- SPIA’s are the oldest type of annuity and the way they work is very simple.  You give the company a lump sum of money and they pay an income stream to you for a set amount of time. (5 years, 10 years, lifetime, etc…)  The lifetime option can not be outlived but you are also giving up the lump sum of money in order to have the income stream.  There are now Return of Premium SPIA’s which pay a bit lower income but insure that the any remaining principal will be paid out in the event of premature death.

Fixed or MYGA Annuity-  This is the traditional fixed annuity.  The MYGA stands for “Multiple Year Guaranteed Annuity”.  This product is also refereed to as a “CD Like Annuity” at times.   The plan offers a fixed interest rate at determined number of years.  The rate can not change during the fixed years listed.   So if you had a 5 year MYGA guaranteed at 3.4%, it means you will get 3.4% for 5 years.   The rate is compounded every year.   At the end of the 5 years, you are then free to take your money and go.   If you take the money out prior to the 5 year term, you will pay surrender penalties on the product.  (You are allowed to take 10% a year without penalty during the 5 year term.

Overall- MYGA’s really are a better way to a better fixed interest rate than that being offered by a bank CD.   The consumer needs to be careful of a few things however.  The first is to find out how long the surrender charges last on the product.  You should match them up with the fixed interest rate period.   If the interest rate on the fixed annuity is guaranteed for 7 years, make sure that the product has a 7 year surrender charge.  You would not want to have a surrender charge that is longer than the rate guarantee.  The second important point is to make sure that the rate you see is not just a first year bonus rate.  If you see something like “5 year annuity with 4.5% first year rate”  you need to inquire as this is probably really a 3.5% or 2.5% product with a bonus on the first year only.

Fixed or MYGA Annuity with Income rider-  This is the same product listed above but some companies will allow you to add an income rider to the policy.  The rider is a way that income can be elected on a lifetime basis in any future year. This allows the client to know exactly how much income can be taken for life.  Income riders can be very useful but you need to know all the details.  You will also want to know if the rider carries an annual fee.

Fixed Indexed Annuity- (FIA) Unlike the MYGA, the Fixed Indexed Annuity uses market based crediting methods to determine interest.   The crediting accounts follow the S & P and various other market indexes to determine how much interest will be credited.   Since it is a fixed product there can not be a negative year.  The worse the product can credit is 0% gain in a down market.  To make up for this protection, the insurance company will cap the upside gain allowed.  There are a huge number of fixed indexed products that credit interest in a number of different ways.  Income riders, accelerated nursing home riders and death benefit riders can be added to a number of the products offered.  It is not uncommon for a bonus to be credited to the initial investment.  They range from 2% to 12% depending on the product.

Overall- Fixed Indexed Annuities have many uses but it is important to pick the right FIA for its intended purpose.    There are also products that have very long surrender periods so it is important to know how long you may be locking your money up for.

How Crowe and Associates can help you pick the correct annuity:  Crowe and Associates is based in Brookfield, Connecticut.  The agency is independent and able to work with any annuity company as a result.  We are A rated with the BBB and help clients find the right annuity type and company to meet their needs.  Once we determine the type of annuity needed, we will then shop to see which company is providing the best rates and terms.  Feel free to request a quote through this site or call our office at 203-567-6235.  You will be contact by someone from Crowe and Associates only.  We DO NOT sell your information to other brokers or companies.

A number of companies offer a variety of fixed annuities in Connecticut which often offer higher interest payouts than a standard bank CD.  The term “fixed annuity” is very generic so I will describe the different types in this post.  The type of fixed annuity that will work best for you depends entirely on your situation and what you are trying to accomplish.  Lets move on to a description of each type.

Single Premium Immediate Annuity (SPIA)- SPIA’s are the oldest type of annuity and the way they work is very simple.  You give the company a lump sum of money and they pay an income stream to you for a set amount of time. (5 years, 10 years, lifetime, etc…)  The lifetime option can not be outlived but you are also giving up the lump sum of money in order to have the income stream.  There are now Return of Premium SPIA’s which pay a bit lower income but insure that the any remaining principal will be paid out in the event of premature death.

Fixed or MYGA Annuity-  This is the traditional fixed annuity.  The MYGA stands for “Multiple Year Guaranteed Annuity”.  This product is also refereed to as a “CD Like Annuity” at times.   The plan offers a fixed interest rate at determined number of years.  The rate can not change during the fixed years listed.   So if you had a 5 year MYGA guaranteed at 3.4%, it means you will get 3.4% for 5 years.   The rate is compounded every year.   At the end of the 5 years, you are then free to take your money and go.   If you take the money out prior to the 5 year term, you will pay surrender penalties on the product.  (You are allowed to take 10% a year without penalty during the 5 year term.

Overall- MYGA’s really are a better way to a better fixed interest rate than that being offered by a bank CD.   The consumer needs to be careful of a few things however.  The first is to find out how long the surrender charges last on the product.  You should match them up with the fixed interest rate period.   If the interest rate on the fixed annuity is guaranteed for 7 years, make sure that the product has a 7 year surrender charge.  You would not want to have a surrender charge that is longer than the rate guarantee.  The second important point is to make sure that the rate you see is not just a first year bonus rate.  If you see something like “5 year annuity with 4.5% first year rate”  you need to inquire as this is probably really a 3.5% or 2.5% product with a bonus on the first year only.

Fixed or MYGA Annuity with Income rider-  This is the same product listed above but some companies will allow you to add an income rider to the policy.  The rider is a way that income can be elected on a lifetime basis in any future year. This allows the client to know exactly how much income can be taken for life.  Income riders can be very useful but you need to know all the details.  You will also want to know if the rider carries an annual fee.

Fixed Indexed Annuity- (FIA) Unlike the MYGA, the Fixed Indexed Annuity uses market based crediting methods to determine interest.   The crediting accounts follow the S & P and various other market indexes to determine how much interest will be credited.   Since it is a fixed product there can not be a negative year.  The worse the product can credit is 0% gain in a down market.  To make up for this protection, the insurance company will cap the upside gain allowed.  There are a huge number of fixed indexed products that credit interest in a number of different ways.  Income riders, accelerated nursing home riders and death benefit riders can be added to a number of the products offered.  It is not uncommon for a bonus to be credited to the initial investment.  They range from 2% to 12% depending on the product.

Overall- Fixed Indexed Annuities have many uses but it is important to pick the right FIA for its intended purpose.    There are also products that have very long surrender periods so it is important to know how long you may be locking your money up for.

How Crowe and Associates can help you pick the correct annuity:  Crowe and Associates is based in Brookfield, Connecticut.  The agency is independent and able to work with any annuity company as a result.  We are A rated with the BBB and help clients find the right annuity type and company to meet their needs.  Once we determine the type of annuity needed, we will then shop to see which company is providing the best rates and terms.  Feel free to request a quote through this site or call our office at 203-567-6235.  You will be contact by someone from Crowe and Associates only.  We DO NOT sell your information to other brokers or companies.

Medigap plans in Connecticut (Also called Medicare Supplement) confuse many people but it is actually very simple to understand once you understand the key points. This post is intended to provide a general overview of “Medigap” to help consumers make an educated decision when choosing one. We will start with the basics of the things you need to know about Medigap plans and then touch on the basics.

HOW A MEDIGAP PLAN WORKS:

The first thing to understand is how a Medigap plan works. A medigap plan works as a secondary coverage to Medicare A and B (also called original Medicare). Original Medicare parts A and B provide coverage for Medical Services. In general, original Medicare coverage 80% of medical costs. The Medicare supplement plan covers what original Medicare does not. As a result, medical providers will bill orginal Medicare and the cost share (patient responsibility) is then sent over to the Medigap company.

WHAT MEDIGAP COVERS:

Medigap plans will only provide coverage on benefits that original Medicare covers to some extent. If Medicare does not provide any coverage for a procedure, the Medigap plan also will not provide coverage (There are some exceptions to this). There are a number of different plan in CT with plans A – M offered. Each lettered plan covers a different percentage of the costs that original Medicare does not cover. Some plans cover everything that Medicare doesn’t such as Plan F. Others only cover 75% such as plan L.

Supplements in the state of Connecticut are standardized which makes life much easier when choosing a plan. This means that they plans can not vary in the benefits they provide. For example, if you purchase a Plan F supplement, the coverage will be the same regardless of the company you choose. The only difference will be in the monthly cost of the plan. Some companies will add additional, value added benefits such as Silver Sneakers or other programs but the mandatory coverage must be the same for every plan.

Medicare Supplements do not cover drugs. If you want drug coverage, you must purchase it separately. (Called a Medicare Part D plan or “PDP plan)

WHO CAN BUY A MEDIGAP  PLAN:

Medigap plans are guaranteed issue in CT. This means that you can enroll in any available plan regardless of your health or age. The only requirement is that you are on Medicare A and B. If you are willing to pay the monthly premium, you can have a plan. For people age 65 and older, the price is the same for everyone regardless of how old you are. (Example: If the AARP plan N costs $152.00 a month for a 65 year old, it costs the same for an 85 year old) People on Medicare under the age of 65 are also eligible for a supplement but they can have fewer choices if they are under the age of 50.

POPULAR PLANS AND COMPANIES:

Medigap comes down to plan type and price. If one company offers a plan L Medigap for less than the other companies, you should go with the one offering it for the least. Benefits are standardized so they can not be cutting out any benefits. They just have the best price. Having said that, the more popular plans over the last 24 months are Plan F, Plan N , Plan L and High Deductible Plan F. United AARP and Anthem BCBS currently have the lowest costs in CT which makes it easy to find the lowest cost company once you determine which supplement you want.

 HOW CROWE & ASSOCIATES CAN HELP YOU:

Crowe and Associates is an independent agency based in Brookfield CT. The agency is A rated with the BBB and is contracted to sell just about every Medigap plan in CT including, AARP , Anthem BCBS, Humana, Mutual of Omaha, Aflac, etc…. The companies pay me commission directly and I charge my clients nothing. I sit down with clients (in person, over the phone or by email) and help them determine which plan is going to work best for them. I also let them know if a new company comes out with the same Medigap they have at a lower price. I can help you understand Medigap and help you determine which plan is best for your specific situation. Feel Free to call my office at 203-796-5403 or email me at Edward@Croweandassociates.com

Would you like to learn More? Register for our “How to choose a Medicare plan” Webinar by clicking this link

A number of companies offer a variety of fixed annuities in Connecticut which often offer higher interest payouts than a standard bank CD.  The term “fixed annuity” is very generic so I will describe the different types in this post.  The type of fixed annuity that will work best for you depends entirely on your situation and what you are trying to accomplish.  Lets move on to a description of each type.

Single Premium Immediate Annuity (SPIA)- SPIA’s are the oldest type of annuity and the way they work is very simple.  You give the company a lump sum of money and they pay an income stream to you for a set amount of time. (5 years, 10 years, lifetime, etc…)  The lifetime option can not be outlived but you are also giving up the lump sum of money in order to have the income stream.  There are now Return of Premium SPIA’s which pay a bit lower income but insure that the any remaining principal will be paid out in the event of premature death.

Fixed or MYGA Annuity-  This is the traditional fixed annuity.  The MYGA stands for “Multiple Year Guaranteed Annuity”.  This product is also refereed to as a “CD Like Annuity” at times.   The plan offers a fixed interest rate at determined number of years.  The rate can not change during the fixed years listed.   So if you had a 5 year MYGA guaranteed at 3.4%, it means you will get 3.4% for 5 years.   The rate is compounded every year.   At the end of the 5 years, you are then free to take your money and go.   If you take the money out prior to the 5 year term, you will pay surrender penalties on the product.  (You are allowed to take 10% a year without penalty during the 5 year term.

Overall- MYGA’s really are a better way to a better fixed interest rate than that being offered by a bank CD.   The consumer needs to be careful of a few things however.  The first is to find out how long the surrender charges last on the product.  You should match them up with the fixed interest rate period.   If the interest rate on the fixed annuity is guaranteed for 7 years, make sure that the product has a 7 year surrender charge.  You would not want to have a surrender charge that is longer than the rate guarantee.  The second important point is to make sure that the rate you see is not just a first year bonus rate.  If you see something like “5 year annuity with 4.5% first year rate”  you need to inquire as this is probably really a 3.5% or 2.5% product with a bonus on the first year only.

Fixed or MYGA Annuity with Income rider-  This is the same product listed above but some companies will allow you to add an income rider to the policy.  The rider is a way that income can be elected on a lifetime basis in any future year. This allows the client to know exactly how much income can be taken for life.  Income riders can be very useful but you need to know all the details.  You will also want to know if the rider carries an annual fee.

Fixed Indexed Annuity- (FIA) Unlike the MYGA, the Fixed Indexed Annuity uses market based crediting methods to determine interest.   The crediting accounts follow the S & P and various other market indexes to determine how much interest will be credited.   Since it is a fixed product there can not be a negative year.  The worse the product can credit is 0% gain in a down market.  To make up for this protection, the insurance company will cap the upside gain allowed.  There are a huge number of fixed indexed products that credit interest in a number of different ways.  Income riders, accelerated nursing home riders and death benefit riders can be added to a number of the products offered.  It is not uncommon for a bonus to be credited to the initial investment.  They range from 2% to 12% depending on the product.

Overall- Fixed Indexed Annuities have many uses but it is important to pick the right FIA for its intended purpose.    There are also products that have very long surrender periods so it is important to know how long you may be locking your money up for.

How Crowe and Associates can help you pick the correct annuity:  Crowe and Associates is based in Brookfield, Connecticut.  The agency is independent and able to work with any annuity company as a result.  We are A rated with the BBB and help clients find the right annuity type and company to meet their needs.  Once we determine the type of annuity needed, we will then shop to see which company is providing the best rates and terms.  Feel free to request a quote through this site or call our office at 203-567-6235.  You will be contact by someone from Crowe and Associates only.  We DO NOT sell your information to other brokers or companies.

WOULD YOU LIKE TO LEARN MORE?   ATTEND ONE OF OUR ANNUITY WEBINARS: CLICK TO REGISTER

A number of companies offer a variety of fixed annuities in Connecticut which often offer higher interest payouts than a standard bank CD.  The term “fixed annuity” is very generic so I will describe the different types in this post.  The type of fixed annuity that will work best for you depends entirely on your situation and what you are trying to accomplish.  Lets move on to a description of each type.

Single Premium Immediate Annuity (SPIA)- SPIA’s are the oldest type of annuity and the way they work is very simple.  You give the company a lump sum of money and they pay an income stream to you for a set amount of time. (5 years, 10 years, lifetime, etc…)  The lifetime option can not be outlived but you are also giving up the lump sum of money in order to have the income stream.  There are now Return of Premium SPIA’s which pay a bit lower income but insure that the any remaining principal will be paid out in the event of premature death.

Fixed or MYGA Annuity-  This is the traditional fixed annuity.  The MYGA stands for “Multiple Year Guaranteed Annuity”.  This product is also refereed to as a “CD Like Annuity” at times.   The plan offers a fixed interest rate at determined number of years.  The rate can not change during the fixed years listed.   So if you had a 5 year MYGA guaranteed at 3.4%, it means you will get 3.4% for 5 years.   The rate is compounded every year.   At the end of the 5 years, you are then free to take your money and go.   If you take the money out prior to the 5 year term, you will pay surrender penalties on the product.  (You are allowed to take 10% a year without penalty during the 5 year term.

Overall- MYGA’s really are a better way to a better fixed interest rate than that being offered by a bank CD.   The consumer needs to be careful of a few things however.  The first is to find out how long the surrender charges last on the product.  You should match them up with the fixed interest rate period.   If the interest rate on the fixed annuity is guaranteed for 7 years, make sure that the product has a 7 year surrender charge.  You would not want to have a surrender charge that is longer than the rate guarantee.  The second important point is to make sure that the rate you see is not just a first year bonus rate.  If you see something like “5 year annuity with 4.5% first year rate”  you need to inquire as this is probably really a 3.5% or 2.5% product with a bonus on the first year only.

Fixed or MYGA Annuity with Income rider-  This is the same product listed above but some companies will allow you to add an income rider to the policy.  The rider is a way that income can be elected on a lifetime basis in any future year. This allows the client to know exactly how much income can be taken for life.  Income riders can be very useful but you need to know all the details.  You will also want to know if the rider carries an annual fee.

Fixed Indexed Annuity- (FIA) Unlike the MYGA, the Fixed Indexed Annuity uses market based crediting methods to determine interest.   The crediting accounts follow the S & P and various other market indexes to determine how much interest will be credited.   Since it is a fixed product there can not be a negative year.  The worse the product can credit is 0% gain in a down market.  To make up for this protection, the insurance company will cap the upside gain allowed.  There are a huge number of fixed indexed products that credit interest in a number of different ways.  Income riders, accelerated nursing home riders and death benefit riders can be added to a number of the products offered.  It is not uncommon for a bonus to be credited to the initial investment.  They range from 2% to 12% depending on the product.

Overall- Fixed Indexed Annuities have many uses but it is important to pick the right FIA for its intended purpose.    There are also products that have very long surrender periods so it is important to know how long you may be locking your money up for.

How Crowe and Associates can help you pick the correct annuity:  Crowe and Associates is based in Brookfield, Connecticut.  The agency is independent and able to work with any annuity company as a result.  We are A rated with the BBB and help clients find the right annuity type and company to meet their needs.  Once we determine the type of annuity needed, we will then shop to see which company is providing the best rates and terms.  Feel free to request a quote through this site or call our office at 203-567-6235.  You will be contact by someone from Crowe and Associates only.  We DO NOT sell your information to other brokers or companies.

WOULD YOU LIKE TO LEARN MORE?  ATTEND ONE OF OUR WEBINARS – CLICK TO REGISTER