Insurance & Annuities

4 Good Reasons to Have Life Insurance

Think you don’t need life insurance if you don’t have kids? Think again. It may seem like an unnecessary expense. But there are many reasons to have life insurance, even if you’re not supporting a family.


Annuities are financial contracts between you and an insurance company. You give the company money now and the company pays you periodic lifetime payments at a later time. Annuities can be useful retirement tools.

Annuities have a special tax advantage under which you won’t pay income taxes on gains in the contract until you begin to withdraw money. Withdrawals may be subject to surrender charges. If made prior to age 59 1/2, may be subject to a 10 percent federal tax penalty.

Types of Annuities

Two types of annuities. The two types of annuities are fixed and variable. With a fixed annuity, you can expect a guaranteed rate of return for a specified time. With variable annuities, where the underlying investments are in stocks and bonds, you have the potential for a greater return on your investment, coupled with higher risk of loss including loss of your original investment.