Term Life Insurance Rates in Alaska
Reader’s Question:
I’m thinking of getting term life insurance here in Anchorage Alaska , but I found out that it was a waste of money. I mean if I don’t die within the period, my life insurance premium goes to nothing. I’m thinking of getting annuities. What is the disadvantage of annuities compared to term life insurance?
Karla
Anchorage, AK
Nice question, Karla
Your complaint against term life insurance is very acceptable and common. Indeed, you will pay life insurance premium within the period of the life insurance policy but you’ll gain nothing when the term ends and you still live. I’m glad you’ve heard about annuities in Anchorage , which is an alternative life insurance by principle. However, it is different from life insurance because it is bought to give you continuous income. Life insurance on the other hand is bought to protect your dependents when you die. In essence, you will enjoy payout from annuities while it’s your dependents who will benefit from the payouts with term life insurance. Both however, provide life insurance benefits in case you die too soon.
There are many companies in Anchorage Alaska AK who provides annuities. Most of them offer the two major types of annuities which are fixed and variable. The difference of the two is that fixed are when the insurance company guarantees a minimum interest rate at the time when the account is growing. There is a guaranteed payment from the insurance company a period after you buy the annuity. The variable annuity, on the other hand is buying an investment option. The amount that you receive from the annuity and the rate of return depends on the investment performance. If for instance, you selected mutual fund as your investment option, your payout will depend on how well mutual fund perform. If you want to ensure that your dependent will receive the payouts continually even if you die, you might as well get the annuity with guaranteed period because the insurance company will be obliged to pay within the period specified in the contract. To know the different types of annuity with fixed payout, you can ask quotes from this site and see what insurance companies for annuities has to offer.
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