What is an annuity anyway?

Its essentially a reverse life insurance policy. You can either put in a lump some of money and immediately receive payments over time or you can defer some of the payments later. OR you can set up the payments as often as you want, usually its a $50/month minimum. If you choose to make flexible payments into the annuity, the growth is tax deferred when purchased inside an IRA or similar vehicle. Generally speaking, a simple fixed annuity will earn 2-3 percent interest and will have surrender charges if you take out money early. These are long term instruments. Now, there are several different version of an annuity. There are fixed, which earn a fixed amount, a fixed indexed, which earns money based on an index (usually the S&P500 or you can choose a more riskier index, but that is based on the client), and will NOT lose value when the index loses value, and a variable annuity, which has a separate account where you can choose various mutual funds or indexes as your vehicle to gain or lose value in the account. You can lose value in a variable. Which is the best? It depends on the situation and client risk tolerance. Once again, there is no 'best investment'.

Parents can take advantage of purchasing an annuity for their children. For as little as $50 per month, you can put away money for college, weddings or for their kids' retirement. When they get older, they can take over the payments! If you come into a good amount of money, purchase a fixed indexed annuity with a guaranteed income rider and 20 or so years later receive payments that can help pay for your mortgage or car payments.

Michael and Dana from Islander Insurance Advisors can help you further.

If you are looking to obtain health insurance, read first!

Or even if you wish to get a quote. Stop. Do not call United Health Care or Humana directly. Call Islander Insurance Advisors. I can help you choose the right plan for you, and even come to your home to discuss the plans further. An employee of Humana will not even meet you at Starbucks. Would you use a call center to buy health insurance? I can come to you or meet at a predetermined location. I would rather meet face to face and build a trusting relationship before anything.

Want to save money?

Annual reviews of your health insurance is a good way to start. Every year, your health insurance premiums tend to rise on average 10-25%. And with new insurance companies coming into the area with new plans, its a good time to test the waters. Your insurance agent should conduct these reviews. He should check to see if you can switch to another company or plan to keep you paying the same amount or if possible, get you on a more efficient plan. Is YOUR agent doing this? Is he looking out for YOU?

Life events change every year too. Children are born, kids graduate college, and maybe its time to invest in a whole life insurance policy.

If you are reading this and thinking, "Hey, my agent does not do this", then maybe its time for a switch. Islander Insurance Advisors will be glad to be on the lookout for you.