Is that 6% an Income Benefit or a Withdrawal Benefit?This is far far less than 6%. It is a pitifully low interest rate for such a long term investment. It will take years before he even gets back his principal. Insurance company products, in almost all cases, are poor investment vehicles as there are fat commissions and profits in these for the insurance company and salesperson. I think an annuity is the worst thing you could do right now, as you are locking in a lifetime investment during a very low interest rate environment. You can do better buying your own bonds (or the PSA preferreds mentioned earlier) if you are simply looking for an income stream. Also, in my opinion, there are no AAA rated life insurance companies. They are all highly leveraged operations. In a financial disaster scenario, I would trust PSA to survive it over an insurance company.
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