Insurance

Starting on January 1 2010, proceeds from annuities will be free from federal income taxes when used to pay for long term care . The Pension Protection Act of 2006 provides the basis for this change in the tax law. So called "long term care annuities" provide an alternative to the purchase of a long term care insurance policy. There are pros and cons to both approaches, and consumers may wish to pursue both options as they potentially complement one another. A positive for the annuity involves...

Similar to many parts of the economy, the market for life settlements took a step back in 2008 as a result of the financial crisis. The face value of life insurance policies that were exchanged through life settlement transactions in 2008 was $11.8 billion, a slight decrease from $12.2 billion in 2007. "Tighter" capital market conditions contributed to the recent advantage that buyers have had over sellers. Analysts believe that the general advantage will return to sellers as liquidity and...

The Bank Insurance and Securities Association compiles and index of securities brokerage and annuity -related revenue of 20 U.S. banks. The BISA-Singer Bank Brokerage Index shows that 61% of the second quarter 2009 revenue of participating banks came from annuity sales. Annuity-related revenue was $95.3 million for the second quarter, a decline of 15% from the previous period. Source: Financial Planning Full Story

Wall Street Journal personal finance columnist Brett Arends wrote an excellent piece on life settlements from a consumer perspective. Arends discusses: The inefficiencies of the life settlement market. When a life settlement makes sense. What to watch out for as a potential seller of a life insurance policy. Rates of return (10-12%) for buyers and investors in the life settlement market. The top three considerations for sellers in the market. Source: Wall Street Journal Full Story