SOURCE: InsuranceQuotes.com

InsuranceQuotes.com

June 11, 2009 14:05 ET

Annuity Insurance Is Essential, but What Is It? InsuranceQuotes.com Explains

NEWTON, MA--(Marketwire - June 11, 2009) - Ask 100 people off the street what annuity insurance is and a large percentage will answer incorrectly or with blank stares. The reality is that certain types of insurance can be hard to understand, says InsuranceQuotes.com, a first class website created to help consumers seeking out the best rates on insurance quotes, but that doesn't mean it isn't important.

"Don't ignore annuity insurance simply because it doesn't define in its title what the insurance is for," said Adam Haber, CEO of InsuranceQuotes.com. "This type of policy provides major financial advantages and security as one reaches retirement."

An annuity insurance policy is basically a contract a policyholder buys from an insurance company. The insurance company is paid a specific amount of money which is designed to grow in value. The insurance company then provides payments to the policyholder at specified time periods (i.e. monthly, quarterly, yearly). Traditionally, annuity insurance pays out after retirement so that a steady flow of money is received.

The advantages of annuity insurance include:

--  Tax deferred investments: Many investments are taxed each year, but
    with money invested in annuity insurance, all capital gains and investment
    earnings are tax deferred until the money is withdrawn. By deferring tax
    payments, the overall value of the policy is built quicker.
--  Income for life: Payments made at specified time periods last as long
    as the policyholder is alive. This provides financial security in later
    years of life
--  Tax free transfers: Generally transfers between different mutual funds
    are taxable, but annuity insurance allows policyholders to rebalance their
    annuity investment portfolios without tax consequences.
    

Receiving annuity insurance quotes from InsuranceQuotes.com is the first step in making retirement a financially secure time. By requesting a free annuity insurance quote from InsuranceQuotes.com, consumers can be put in touch with insurance professionals who can discuss the advantages of securing an annuity insurance policy.

For more information on unbiased annuity insurance quotes, visit www.InsuranceQuotes.com.

About InsuranceQuotes.com

For nearly two years, InsuranceQuotes.com has been a major resource for consumers interested in lowering their insurance costs. The company provides auto insurance quotes, life insurance quotes and homeowners insurance quotes to help all consumers lower their bills.

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