Can I Buy My Own Annuity

[0b1kanobee]

$100k per ss# is very low.

Any work arounds like FDIC ? Different account types, etc. etc. ??

You seem very concerned about losing money and rightfully so. Just something to think about though. We have just been through and I believe are still in it, one of the worst financial times in recent history.

How many bank failures do you think there have been in the last 18 months? How many insurance companies do you think have collapsed? I know AIG did but what happened? Well the government or we now own them and your money you had with them is safe.

Pretty much the same thing with insurance companies. These products are designed as relative safe products. Provided the insurance company doesn't go hog wild with risky investments which technically they are not suppose to and who knew credit default swaps were risky, you should be fine. Worst that could happen is another company buys them out.

That is why I like LSW. They might not offer the highest bonuses, rates or other bells and whistles because they are conservative. They have been around since 1848, one year before Abraham Lincoln became President and they are highly rated. They also didn't take one dime of bailout money. When companies start throwing around unrealistic returns or sketchy ones, then I start to wonder how safe the client's money may or may not be. usually though, they would just be bought out by another company. After all, it is in other comnpanies best interest to do so. Imagine if a relatively decent size annuity company say, LSW for instance were to somehow get in financial trouble. People lose millions in annuities. That isn't gonna help ING sell a ton of annuities. It would give the product a bad name. ING would be better off to pony up and take it over. (just an example)

 

[pcwest]

1st. Guarantee Associtaion.

Most states do have a guarantee Assocation. Most cover up to $100K per person per company. That is why it is important to look at spreading the money around to different carriers. Tax-Advantage Dist. strategy works well for this.

This session, some states are considering moving the $100K amount to $200K.

2nd. Creditor Protection

Some states like AZ and Florida (OJ Simpson) have unlimited creditor protection. Check with your DOI to find out what your state currently has and what is on the table in the state legislatures.

Good Lcuk!

 

[insuranceexec]

1st. Guarantee Associtaion.

Most states do have a guarantee Assocation. Most cover up to $100K per person per company. That is why it is important to look at spreading the money around to different carriers. Tax-Advantage Dist. strategy works well for this.

This session, some states are considering moving the $100K amount to $200K.

2nd. Creditor Protection

Some states like AZ and Florida (OJ Simpson) have unlimited creditor protection. Check with your DOI to find out what your state currently has and what is on the table in the state legislatures.

Good Lcuk!

If you are only covered per SS#; what good is spreading it around to different companies?

 

[0b1kanobee]

I don't know a whole lot, but I do know this. In 2008 over a TRILLION dollars was lost in retirement accounts. I don't know of one person that lost a penny in a fixed annuity.

The way I figure it, you have a few choices. Put your money in the market and diversify it. You can still lose it there......

Put your money in the bank where it stands no chance of even keeping up with inflation.

Hide it under your matress or burry it in your back yard. If it comes to that, will money even be worth anything at that point?

Park it in a fixed annuity.

It all depends on how much money you are willing to possibly lose in the market. When you plan on retiring. How much money you need for retirement.

I find the number one concern with people these days is out living there money. That is where an annuity works well.

 

[HarryRenard]

If you are only covered per SS#; what good is spreading it around to different companies?

Per company, not per person. Besides that most would agree that anytime you spread your risk you are better off.

LIMITS ON AMOUNTS OF COVERAGE
The statute also limits the amount that the corporation is obligated to pay. The corporation cannot pay more than
the amount the insurance company would owe under a Policy or Contract. Also, with respect to any one life,
regardless of the number of Policies or Contracts with the member insurer, the corporation will pay a maximum of
$300,000 even if the Policies or Contracts provide different types of coverage. Within this overall $300,000 limit,
the corporation will not pay more than $100,000 in cash surrender values, $300,000 in health insurance benefits,
$100,000 in present value of annuities, or $300,000 in life insurance death benefits--again, no matter how many
Policies and Contracts the insured has with the member company, and no matter how many different types of​

coverage.

 

[0b1kanobee]

Per policy.

Same as a FDIC account, per account not per person. The account is the same as a policy if you were trying to compare.

Another way to look at it is, all the big wealth in America don't put their money into bank accounts. They put tens of millions into insurance products.

Look at ING. You can get an online account like a checking account that pays a very nice interest. Yet, they are not a bank or FDIC insured, they are an insurance company.

 

[HarryRenard]

Per policy.

Same as a FDIC account, per account not per person. The account is the same as a policy if you were trying to compare.

Another way to look at it is, all the big wealth in America don't put their money into bank accounts. They put tens of millions into insurance products.

Look at ING. You can get an online account like a checking account that pays a very nice interest. Yet, they are not a bank or FDIC insured, they are an insurance company.

It is Per Person, Per Company.

If you have 300k at one company, you are only insured for 100k with that company.

But if you have 3 100k accounts at 3 different companies you are covered IF all three companies went out of business.

 

[0b1kanobee]

It is per person per company. So if you have 300k at one company, you are only insured for 100k with that co.

But if you have (3) 100k accounts at 3 different companies you are covered IF all three companies went out of business.

I agree, otherwise it wouldn't make any sense, just keep it in one account with the same company but we know that isn't the case. I agree with you Harry. That is exactly how I understand it and the only way it makes sense otherwise the law is moot.

 

[insuranceexec]

Per company, not per person. Besides that most would agree that anytime you spread your risk you are better off.

LIMITS ON AMOUNTS OF COVERAGE
The statute also limits the amount that the corporation is obligated to pay. The corporation cannot pay more than
the amount the insurance company would owe under a Policy or Contract. Also, with respect to any one life,
regardless of the number of Policies or Contracts with the member insurer, the corporation will pay a maximum of
$300,000 even if the Policies or Contracts provide different types of coverage. Within this overall $300,000 limit,
the corporation will not pay more than $100,000 in cash surrender values, $300,000 in health insurance benefits,
$100,000 in present value of annuities, or $300,000 in life insurance death benefits--again, no matter how many
Policies and Contracts the insured has with the member company, and no matter how many different types of​

coverage.

You are correct. My apologies for a sudden brain fart. Take a look at this and tell me your thoughts about the $1M limit.


http://www.arlifega.org/documents/ALHIGAActSummaryDisclaimerNotice.pdf

 

[HarryRenard]

You are correct. My apologies for a sudden brain fart. Take a look at this and tell me your thoughts about the $1M limit.


http://www.arlifega.org/documents/ALHIGAActSummaryDisclaimerNotice.pdf

I think you have some screwy sh*t going on there.
I think it's weird it only applies to annuities (if i read it right)and also that you have to be a resident of the state at the time of insolvency.

The only good thing is that it rarely will come into to play, companies are always of some value to another company even if it was run into the ground. You have to be a real F-up to bankrupt an insurance company with all that cash flow.

Unless of course all you want is the cash flow ie. Marty Frankel, gotta love that geek.