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In Reply to: Annuity product to cover wife instead of a joint survivor pension posted by John on June 25, 2001 at 21:09:33:
John: It's hard to say if this is a "good deal" or not from the information you have given. Lincoln Benefit is a good company and their contracts are generally good, as well.
One thing to ask your agent: what are the costs for the insurance side of the contract (generally referred to as M & E expenses)? Those costs will be deducted regardless of the earnings on your premium deposit. They shouldn't be more than 1.35% per year - sometimes states a 135 basis points.
Also, are you aware that unlike a life insurance contract, an annuity's death benefit may be income-taxable to the beneficiary? Check with a qualified tax advisor to determine how that would be treated in your particular situation.
Be very careful. Some strategies using annuities work just fine; others only line the agent's wallet with your dollars and leave with less than you thought. If I were you, I would take the agent's proposal to either another agent for a second opinion, or an estate planning attorney, or a qualified CPA who specializes in retirement and tax planning. If you go the agent route, you might be best served by a Chartered Life Underwriter (CLU) and/or Chartered Financial Consultant (ChFC) or a Certified Financial Planner (CFP). With the latter, expect to pay for the advice - money well spent, in my opinion.