‘I’ll Take Guaranteed Life Income Over an Annuity’
October 26, 2021 by Yan Barcelo
“People are more willing to purchase a guaranteed stream of income for life than an annuity; the product may be the same, but the title matters.” states a Morningstar study authored by Stan Treger.
With an annuity, a client signs a contract with an insurance company by which he gives an amount of capital to the insurer in exchange for a guaranteed revenue to the end of his days. This is not an investment in some fund or other which the client can retrieve at any time. The client gives their money to the insurer in exchange for revenue.
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