Uh, no they don’t. This is kind of like saying “Your Doctor is going to drill a hole in your head to let the sickness come out with the blood as it runs out”. Uh, no they won’t….at least not anymore. This may have been true 30-40 years ago but it certainly isn’t true of today’s Annuities.
Let’s review the six types of Annuities and see if this is true or not:
Single Premium Immediate Annuities (SPIAs)
YES, it’s true of this one. Just like Social Security (which is a form of an Annuity) and any company pension (Annuities) when you die the income runs out. In this product the insurance company keeps your money at the end IN EXCHANGE for rippin’ high income while you are alive.
Fixed Annuities
NOT TRUE, your family gets the money when you die.
Variable Annuities (Sold by Joker Brokers)
NOT TRUE, your family gets the amount you INVESTED, or the Account Value, whichever is higher when you die. Sounds awesome at the Snake Oil Salesman sales pitch but actually turns out to be an incredibly expensive form of life insurance you buy in your 60’s or 70’s when your need for life insurance is at it’s lowest.
Fixed Indexed Annuities
NOT TRUE, your family gets the money when you die.
Fixed Indexed Annuities with Guaranteed Income Riders
NOT TRUE, your family gets the money when you die.
Single Premium Life Insurance Contracts (Modified Endowment Contracts=MECs)
NOT TRUE, your family gets WAY more than you put in if you die.
As with all of the other Myths in this series, this one is completely false and only exists because Joker Brokers make huge profits perpetuating these lies.
This concludes the series on Annuity Myths: Why Americans Hate Annuities
I hope you found value in these short teachings and that you feel empowered to stand up against any selfish Joker Brokers who try to convince you that Annuities are….. (add any negative you choose).
To your amazing retirement,
Charlie Jewett
Author, Speaker, Podcast Host and Whistle-Blower
<< Annuity Myth #1: Annuities Have High Fees
<< Annuity Myth #2: Annuities will Tie Up Money and Limit Access
<< Annuity Myth #3: Annuities Have No Upside Potential and Low Rate-of-Return
<< Annuity Myth #4: Annuities Pay The Agent a High Commission
<< Annuity Myth #5: Annuity Companies may go out of Business so the Money’s Gone