http://insuranceglobe.net/learning_center Thu, 17 May 2012 20:54:31 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 http://insuranceglobe.net/learning_center/fixed-annuities-vs-cds/ http://insuranceglobe.net/learning_center/fixed-annuities-vs-cds/#comments Fri, 27 Mar 2009 02:10:10 +0000 Admin http://insuranceglobe.net/learning_center/?p=133 This is a very handy chart to compare the features and benefits of fixed annuities vs CD’s.

CERTIFICATES OF DEPOSIT (CD’s) VS. MULTI-YEAR GUARANTY FIXED ANNUITIES
CERTIFICATE OF DEPOSIT		FEATURES		FIXED ANNUITY	COMMENTS
Yes		Guaranty of Principal? / Safe?		Yes	Both are “safe money” instruments.
Yes		Monthly Interest Income?		Yes*	Monthly Income is typically available with both.
Yes		Surrender Charges?		Yes	Annuities only apply surrender charges to amounts in excess of penalty free withdrawals. If you touch “a penny” of your CD, you may be subject to a penalty on the entire deposit.
No**		Tax-Deferral if you Choose?		Yes	Eliminate current income and restart if later needed-when you want. You choose when to pay taxes-not Uncle Sam.
No		Lifetime Income if you Choose		Yes	Create an income you cannot outlive-only if you choose.
No		Bypass of Probate?		Yes	Avoid the time, publicity and expense of probate.
No		Protection from Creditors?		Yes***	Annuities and life insurance are the only financial vehicles protedted from creditor claims.
No		Penalty Free Withdrawals?		Yes	Access a portion of your account value each year with NO penalty, typically after the first year.
No		Nursing Home Waiver?		Yes*	surrender charges are waived on a portion of your annuity if you are confined to a nursing home.
No		Terminal Illness Waiver?		Yes*	Surrender charges are waived on a portion of your annuity if you are diagnosed as terminally ill.
No		Ability to Control Distributions to your heirs, after death?		Yes	You can choose to have the proceeds from your annuity paid to your heirs in a lump sum or as an income over a period of time. Different selections can be made for each beneficiary.

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