When it comes to purchasing insurance on your income, it’s important to decide when you want your payout to come. Are you looking for a plan that will protect those closest to you should you pass unexpectedly? Or is a consistent monthly income what you need? At Murray Talks Insurance, we can help you shop for the best plan for your needs by offering best practices for deciding between an annuity or life insurance policy in Alabama. We’ve also included what to do after you’ve made your decision.
Decide between an annuity or life insurance plan
Making a final decision about an annuity or life insurance policy comes down to your intentions. Let’s take a quick look at each for a direct comparison.
Life insurance policy
A life insurance policy is designed to protect your loved ones after your passing. The payout from your plan will not come until after you have passed away. If you’re looking to purchase a life insurance policy, your intentions are to provide your beneficiary with financial stability by replacing your income. These plans generally require the payment of a monthly premium that’s decided by various factors that include the type of insurance plan you purchase. A life insurance plan can help remove some of the financial burdens that your family will take on after you pass.
Annuity
If you choose to purchase an annuity, you’re guaranteeing yourself a fixed monthly income for the rest of your life. The payout from this plan comes at 59 and a half rather than at death. Additionally, an annuity is typically an investment that’s paid with a one-time payment rather than monthly premiums. If you’re worried about your financial future heading into retirement and beyond, an annuity can provide financial peace of mind.
Find a financially stable company
There are a lot of insurance companies out there that will happily sell you an annuity or life insurance policy, but not each is on equal footing. If you purchase a plan from a company that isn’t financially stable, it might not be around when it comes time for you or your loved ones to receive a payment. Murray Sterner and the team here at Murray Talks Insurance can help you find an insurance provider that has an established record and a stable future.
Check with the Alabama State Guaranty Association
If we’ve learned anything in 2020 it’s that everything we know can be flipped upside down in a matter of days. This is the same for insurance companies. Even if you’ve chosen a financially sound insurance company to buy your annuity life insurance plan through, it’s best to verify this company’s standing with the Alabama State Guaranty Association. If the insurance company you’re looking at is at all impaired, it would be best to look elsewhere.
Contact Murray Sterner
Make the decision that’s best for you and your family when it comes to choosing an annuity or life insurance plan in Alabama. Take into account your own financial stability as well as that of your loved ones. Get in touch with our team at Murray Talks Insurance and we’ll help you choose a plan that’s right for you.