| DM General, Inc RETIREMENT-INSURANCE-INVESTMENT |
How do annuities work?
In general, annuities have two stages: The deferral
stage is when you open an annuity with an insurance
company and fund it either with a lump sum or
periodic payments called premiums, and that money
is allowed to accumulate over time. Stage two comes
at conversion, when the insurance company begins
making payments back to you from the accumulated
value of your annuity – often called the annuitization
or income stage.
This is an overly simplified explanation, but clearly
describes annuities at their most basic level. There
are many variations to both stages that make
different types of annuities attractive to different
people (including one distinct version called an
immediate annuity), but the fundamentals are the same
Who needs life insurance?
Most people need life insurance in one form or another. If one or
more of these scenarios apply
to you, you may have a need for life insurance:
• You have dependent children
• You have a spouse or older family member
who depends on your wages
• You are a working couple with debt
• You are planning to start a family
• You own a home
If you are in one or more of these stages of your life, you may
want to meet with a licensed
insurance professional to see if life insurance is right for you. It
could prove to be one of the
most valuable financial decisions you ever make
In general, annuities have two stages: The deferral
stage is when you open an annuity with an insurance
company and fund it either with a lump sum or
periodic payments called premiums, and that money
is allowed to accumulate over time. Stage two comes
at conversion, when the insurance company begins
making payments back to you from the accumulated
value of your annuity – often called the annuitization
or income stage.
This is an overly simplified explanation, but clearly
describes annuities at their most basic level. There
are many variations to both stages that make
different types of annuities attractive to different
people (including one distinct version called an
immediate annuity), but the fundamentals are the same
Who needs life insurance?
Most people need life insurance in one form or another. If one or
more of these scenarios apply
to you, you may have a need for life insurance:
• You have dependent children
• You have a spouse or older family member
who depends on your wages
• You are a working couple with debt
• You are planning to start a family
• You own a home
If you are in one or more of these stages of your life, you may
want to meet with a licensed
insurance professional to see if life insurance is right for you. It
could prove to be one of the
most valuable financial decisions you ever make
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