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variable life annuity-- primerica
Old 08-11-2005, 09:03 PM   #1
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variable life annuity-- primerica

Looking for input--- The product is an immediately payable variable annuity with a "death benefit" as in the highest vlue attained is the death benefit--- you pick your investment funds as in a ira and withdrawals are similar--- with 1 mil to invest yes or no and why common brainiacs
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Re: variable life annuity-- primerica
Old 08-11-2005, 09:31 PM   #2
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Re: variable life annuity-- primerica

There may be sleazier, less respected insurance companies than Primerica- I just don't know who they are. Avoid Primerica like the plague. If you are interested in variable annuities, look at Vanguard (although I'm not sure if they have "living benefit" riders- which are important to some investors but not all), Hartford, American Skandia, Nationwide, Jackson National.

Joseph Belth, publisher of the Insurance Forum, dissects Primerica and it's sordid history- and it's not pretty. Consider yourself warned.
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Re: variable life annuity-- primerica
Old 08-12-2005, 07:02 AM   #3
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Re: variable life annuity-- primerica

Yeah, primerica is pretty bad. In trying to come up with a less savory company, the best I could do was Torchmark, but even they might be less despicable.

I think the VAs hung with guarantees are massively overpriced for what they are. Insurance companies manufacture these products mainly using freely available components in the markett (mutual funds, options, other derivatives, etc.) and then slap huge fees on top of them. IMO, you could do a lot better on your own and acheive similar results for a fraction of the cost.
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Re: variable life annuity-- primerica
Old 08-12-2005, 10:05 AM   #4
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Re: variable life annuity-- primerica

Everything I've heard about variable annuities--no matter *who* they're from or by--screams, "Run away! Run away!"

There is a place in some portfolios for a fixed annuity, but I'd stay away from variable annuities. Here are a couple of links:

http://www.smartmoney.com/retirement...wrongannuities

http://news.morningstar.com/classroo...4514-3,00.html
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Re: variable life annuity-- primerica
Old 08-12-2005, 10:33 AM   #5
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Re: variable life annuity-- primerica

I strongly agree with all three of the above posters!!

If you are going to consider an annuity I would say Fidelity would be a good one to add to your Vanguard list.
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Re: variable life annuity-- primerica
Old 08-12-2005, 10:42 AM   #6
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Re: variable life annuity-- primerica

Quote:
Originally Posted by peggy
Everything I've heard about variable annuities--no matter *who* they're from or by--screams, "Run away! Run away!"

There is a place in some portfolios for a fixed annuity, but I'd stay away from variable annuities. Here are a couple of links:

http://www.smartmoney.com/retirement...wrongannuities

http://news.morningstar.com/classroo...4514-3,00.html
Scott Burns, the widely read financial columnist at the Dallas Morning News, wrote a column not long ago entitled "7 Sins of Variable Annuities". I think his key message was this quote:

" you might be tempted to put some of your money in a variable annuity. Don't."

REW
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Re: variable life annuity-- primerica
Old 08-13-2005, 10:52 PM   #7
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Re: variable life annuity-- primerica

thanks guys
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Re: variable life annuity-- primerica
Old 08-14-2005, 09:54 AM   #8
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Re: variable life annuity-- primerica

Immediate income VA can pay off if you live a long time since they will provide payments for the rest of your life. So if you have a history of longetivity in your family it could be considered a good hedge against living past the average life span.

But like other posters limit your choices to VA annuity providers that are also in the no load MF industry, esp Vngd and Fido. If the product is sold by a local agent or bank run away. Commissions on VA products sold by local agents are usually in the 5-7% range. They get paid that by the insurance company for a reason. VA are highly profitable.
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