Skip to main content
No. of Recommendations: 1
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.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.