Life insurance pays the beneficiary (or beneficiaries) a sum of money upon the death of the policy holder. Beneficiaries can use the payment for anything they wish, but it is typically used to pay funeral expenses and pay off mortgages and other debt.
If you are considering selling life insurance as a career you should be a disciplined and highly motivated individual who enjoys continuously learning and improving your sales techniques. You are a strong communicator, and have good verbal and written skills. You are a caring individual who can present the need for life insurance in a professional and tactful manner.
Thoroughly research the field, and even spend a day or two with someone you know in the business to help determine whether life insurance sales is the choice for you.
An annuity is a promise from an insurance company to provide you with monthly income payments for life. Whether you buy a deferred annuity for the future or an immediate annuity to guarantee lifetime payments right away, you do have the option of cashing it in on the secondary market. Some annuity companies will surrender the money back to you after they subtract fees, but there are options on the secondary market to sell your annuity for cash, quickly.
Speak with your financial adviser to assess your retirement needs. In many cases, you will need less than the sum total of your retirement investments provide. This may be a good time to find out if it will be worth it to sell all or part of your annuity payments. Before selling any investment, consult with a financial professional to make sure you are making the correct choice.
There are numerous types of annuities. Leases and rental payments are two examples. In both types, though, a specific amount of money is due to be paid or received at specific intervals, say every week, every month, quarterly or annually. Annuities are usually paid or received over a defined period of time. Another type of annuity is a life annuity.
A life annuity is different from other annuities in that it usually ends when the person receiving the payments dies. Many people buy annuities to give them a steady stream of income during retirement. These types of annuities are really financial contracts. They are often sold by insurance companies.
Generally, you would make a one-time or lump-sum payment or regular payments to the insurance company to fund the annuity. Common types of life annuities are: Fixed and variable annuities; guaranteed annuities; joint annuities; and impaired life annuities.
Life annuities are often used to provide retirement income.
Life annuities are often used to provide retirement income.
Without retirement benefits, you would be unable to live your desired lifestyle during your retirement years. However, pension benefits or annuity payments are not always necessary if you have other income from real estate rental property, a large IRA, or some other income. In these cases, you may wish to sell your retirement benefits. To do this, you will need to locate a company that buys annuity and pension payments. These companies often advertise to purchase your structured settlements.
Call several settlement companies and ask for quotes to purchase your retirement income. The settlement company will require some basic information like your name, address, and phone number. You also need to tell them your monthly payment amount, how long the benefits are expected to last, what the payments are (i.e. pension or annuity), and who is making the monthly payment to you (which company is paying you). The settlement company will then offer you a quote. This quote will be a lump sum of money, and you will be exchanging your monthly payments for this lump sum of money. The lump sum, however, will typically be less than your total expected lifetime payments.
Annuities can prove to be a valuable element in funding your retirement plans. An annuity is basically a contract for which you make an up-front payment. In return, the company selling the annuity promises to pay you regular payments in the future. But you must know how annuities function and what their key features are.
Things You'll Need
Start shopping. Insurance companies, banks, brokerage houses, mutual-fund companies, and even nonprofit organizations all sell annuities.
Learn the two basic kinds of annuities and how they differ.
A fixed annuity guarantees you a certain future payment. This is a good option only for very, very conservative investors. The rate of return on your money is low, and annuities use actuarial tables based on a person living to be 100.
A good salesperson can sell just about anything, including annuities. Salesmanship is the foremost criteria for becoming a successful annuity agent, and there are many opportunities to apply those skills.
Because annuities are insurance policies, annuity salespersons are licensed to sell insurance. If they sell variable annuities, they must also be licensed to sell securities by the U.S. Securities and Exchange Commission and registered with the Financial Industry Regulation Authority (FINRA). When the legislature deregulated the financial services industry in the 1990s, many different organizations began selling insurance and investments. Annuities are now sold by banks and brokerage firms as well as insurance companies. Annuities got a bad reputation in the 1980s when they were oversold as safe alternatives to retirement accounts, generating lofty fees and premiums while investors misunderstood the investment risks. The industry pressured agents to recognize the insurance element of annuities.
A pension is a guaranteed periodic payment that is provided to former employees who have retired and worked the requisite number of years for a particular employer. And, because it is eventually owned by the employee after meeting certain requirements, a pension right is considered an asset from a legal perspective. Because of this aspect, the pension payment stream can also legally be sold for cash up front if a buyer is willing to buy the rights to the pension stream from the original owner. But is it the smartest approach to one's retirement? That depends.
The Pension Concept
A pension, technically known as a defined employment benefit, is the traditional retirement that was provided to employees who vested their time in a particular employer, usually 20 to 25 years at least. Once retired, the employee receives a monthly payment or stipend for service provided to the employer. Although once quite common, a retirement pension program has become fairly rare and is now only found in government employment and a small number of large corporations that have existed for a number of decades. Modern retirement plans are built on a 401k model and self-investment management instead.
Purchase an annuity for income over a period. You pay a lump sum or fixed sums to the insurance company for a guarantee of payment starting now or sometime in the future. Annuities guarantee payments for your lifetime or a fixed period beyond your lifetime. Sell your investment if something happens causing you to need your money now.
Decide the terms that you want for selling your annuity. You can sell your investment in full or sell some of the future payments.
Pick a company that buys annuities. Shop around and compare prices and terms. Choose the most favorable terms for your situation.
Check Prosperity Partners, Inc. (PPI) for a complete list of required documents for selling an annuity. Locate all of the documents before you hire the company to speed up the process of selling your annuity.