When Is Life Insurance NOT Life Insurance? - Page 3

Desertdi · ‎03-13-2010

@Carmie wrote:
@Desertdi I have five different annuities. I opened them to generate tax deferred steady retirement income. Of course if you pass while there is still money in them, the balance will be sent to your beneficiary.

Three of mine are through an insurance company and two are from an investment company. You must start taking payments from an annuity when you are 70 1/2, But can withdraw without penality when you are 59 1/2.

@Carmie There are many different types of annuities. What I meant was in response to the OP's question: Do you consider it life insurance? I do........di

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CalminHeart · ‎03-09-2010

@Anonymous032819 wrote:
When it falls under the umbrella of "Life Insurance", but is another product.

As some of you may remember, going through my dad's bank statements, I came across a monthly automatic withdrawl that said, "AAA Life Insurance".

Come to find out, he had a policy for accidental injury/death, and that it is not a true life insurance.

So, if he got injured, or died in a automobile accident, then monies would be paid, but dying of natural causes, they don't pay out on.

So, that solves that mystery.

I worked in the insurance, fixed & variable annuities, and securities field for nearly 40 years. This is just one type of life insurance - an option offered alone or as an add-on to a life insurance policy - by a lot of companies. It's not fraud but I am not sure why anyone would choose it as a stand-alone. I've received a lot of those AAA apps since I turned 65 and understand how someone might check the wrong box or miss another box. I'm sorry it wasn't caught and fixed prior to his passing.

VaBelle35 · ‎03-10-2010

Many people get standard term life insurance with the company they work for and buy these other insurances to round out their coverage while they are working.

Then they retire and forget or don't realize that they no longer have traditional life insurance, that it does not continue in retirement even with some pensions.

===================================
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# IAMTEAMWEN

millieshops · ‎03-09-2010

@Tinkrbl44I get that! My father also was an insurance agent. He started his business working out of our diningroom, so I often heard those phone calls. Maybe it was the time, maybe it was that we were a small town and most of us knew each other at least by name, but many of his clients were like your dad - not a whole lot of questions.

A whole line of family has followed in my father's footsteps. Sad to say, even today with all the info available, many still don't pay as much attention to buying insurance and other critical details as they do to buying a new shirt.

Financialgrl · ‎03-13-2010

@millieshops wrote:
The credit union I belong to offers $1000 of a policy of that type just for being a member, but, of course, they try to sell more. I've never paid anything to buy more, but I do think the marketing is very clear as to what mine covers. I'm not paying so I truly did not pay much attention, but no way is a "natural" death covered at all. I'm close to positive that no one in my family would even think to contact the CU for anything more than the dollars in my account. That's because I never thought to tell anyone.

I belong to Navy Federal CU and a few years ago they sent out something with the same type coverage free. I think I have $2K of coverage bc of the types of accounts there. Shortly thereafter, I must've gotten a few emails a week about increasing that amount.

Carmie · ‎10-25-2010

@Desertdi wrote:
@Carmie wrote:
@Desertdi I have five different annuities. I opened them to generate tax deferred steady retirement income. Of course if you pass while there is still money in them, the balance will be sent to your beneficiary.

Three of mine are through an insurance company and two are from an investment company. You must start taking payments from an annuity when you are 70 1/2, But can withdraw without penality when you are 59 1/2.

@Carmie There are many different types of annuities. What I meant was in response to the OP's question: Do you consider it life insurance? I do........di

That is interesting. I have never thought about an annuity as being life insurance. I have both.

An annuity will pay me while I am living, and life insurance pays after my death.

I just had a meeting with my financial adviser adviser/investor and moved two different annuities to another company. I will go back in December to talk about an annuity my DH has that he is not happy with...fees are too high. I will ask if annuities are life insurance. You piqued my interest.

SahmIam · ‎04-16-2010

@Kalli I believe you're talking about the Gerber Life policy. Still being thrown at parents as we speak. My parents bought it for me as a child; 50 years later it's worth $600 though they paid $15 a month for 21 years.

Yep.

My dad had SO much insurance on him when he was employed due to all the traveling. Multiple millions would be paid out if he died in any way other than natural causes. Once he retired, he cut back on the accidental and upped his "natural causes" life insurance policy. When he died of pancreatic cancer, my mother found herself with a healthy chunk of money that she then turned around and invested.

CelticCrafter · ‎03-09-2010

@Carmie wrote:
@Desertdi wrote:
@Carmie wrote:
@Desertdi I have five different annuities. I opened them to generate tax deferred steady retirement income. Of course if you pass while there is still money in them, the balance will be sent to your beneficiary.

Three of mine are through an insurance company and two are from an investment company. You must start taking payments from an annuity when you are 70 1/2, But can withdraw without penality when you are 59 1/2.

@Carmie There are many different types of annuities. What I meant was in response to the OP's question: Do you consider it life insurance? I do........di
That is interesting. I have never thought about an annuity as being life insurance. I have both.

An annuity will pay me while I am living, and life insurance pays after my death.

I just had a meeting with my financial adviser adviser/investor and moved two different annuities to another company. I will go back in December to talk about an annuity my DH has that he is not happy with...fees are too high. I will ask if annuities are life insurance. You piqued my interest.

Annuities do have a payable death benefit, at least the two we have do.

beckyb1012 · ‎03-09-2010

I have a $2,500.00 one for just being a member to the local county chapter of my auto and h.o. insurance. I just keep it clearly marked that it is "accidental" with all my other life insurance, bank accounts, and Estate Planning documents in my files for my Executrix. But to discover that was all one had would be so hard.

"Live frugally, but love extravagantly."