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2 votes

Rate of return on an Life Insurance Annuity

I’m in the situation and looking myself. Annuity has the benefit that the money is guaranteed to never run out until the moment you die. In a savings account and drawing out money, you may still have $...
gnasher729's user avatar
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0 votes

Rate of return on an Life Insurance Annuity

If we say that the "fair" discount rate is d, then after n years, your principal will be worth Pd^n. For instance, suppose we use a discount rate of 96%, and you die after 25 years. Then ...
Acccumulation's user avatar
9 votes

Rate of return on an Life Insurance Annuity

See other answers about annuities They are very much an insurance product; you are paying someone to guarantee you an ongoing income no matter what investments are doing, for your entire life and/or ...
keshlam's user avatar
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6 votes

Rate of return on an Life Insurance Annuity

Other than the math error as base64 illustrated, your intuition is correct. Your actual return starts negative and climbs to 6% the longer you live. It's important to remember that annuities are not ...
D Stanley's user avatar
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14 votes
Accepted

Rate of return on an Life Insurance Annuity

your real gain is only 50K. You are correct about the nominal gain in dollars (ignoring inflation). It is $50,000. This comes out to a 2% rate of return. But that is not totally correct This is ...
base64's user avatar
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-2 votes

Can you cancel a fixed-income annuity contract anytime?

Fixed-income annuity contracts typically come with specific terms and conditions regarding cancellation. Whether or not you can cancel such a contract anytime depends on the terms outlined in the ...
Samuel Mat's user avatar
2 votes

Can you cancel a fixed-income annuity contract anytime?

There are different types of fixed annuities. Some are irrevocable. I'm going to assume that you are referring to one that is for "X" years at Y% with the principal being returned at the ...
Bob Baerker's user avatar
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3 votes

Can you cancel a fixed-income annuity contract anytime?

Most traditional annuities are purchased; you give them money once and they promise to send you checks on a regular basis for the rest of your life and/or the lives of anyone else you want to cover. ...
keshlam's user avatar
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