Personal insurance and annuity???

[car]

I've been paying this annuity and insurance since 2000. $5200 yearly both combined. I'm thinking if to stop. The benefits are low and doesn't make sense. At the time I wanted to use the insurance as collateral to build a house. Back then a house and land was 250k. Times have changed and I have insurance and annuity coverage for me and my family where I work.
Talking to my insurance agent or any agent, they will always say to keep paying the premium because it is this way they continue to make a business and living from my contributions. I cannot adjust the premiums as it was a life of Barbados policy and it is therefore fixed when it was taken over by sagicor. The coverage is 250k with critical illness. Just the basic. What do you all advise?

[88sins]

find out whats the total major medical coverage in your employers policy. If it's benefits are more than what your personal coverage is now & you don't plan on leaving the job or foresee the establishment closing down anytime soon, drop the personal insurance & keep the annuity.

[redmanjp]

Concerning Life Insurance- who has the best (including the best rates) ?

[bluefete]

What 88sins said. Also, if you are going to close the annuity, be prepared to lose 25% of the total value to short man in income taxes.

[VexXx Dogg]

Not an insurance person, but speaking from personal experience.

It's good to have an annuity outside of current employment, plus you can claim it back from income tax return (up to 12000/yr if I'm not mistaken.)
If you're not getting value for the insurance, maybe drop it, but it won't hurt to have it as a backup plan.

If you try to take out a new plan it will cost more since you've aged and it will impact the calculation.

[88sins]

Not an insurance person, but speaking from personal experience.

A-It's good to have an annuity outside of current employment, plus you can claim it back from income tax return (up to 12000/yr if I'm not mistaken.)


B-If you're not getting value for the insurance, maybe drop it, but it won't hurt to have it as a backup plan.

If you try to take out a new plan it will cost more since you've aged and it will impact the calculation.

A-This was increased to $18000.00 iirc
B-It will hurt, one will pay the insured & the other will partly reimburse payer company.

[Drea]

Is the insurance life or medical? If its medical I'd say drop it if you are able to drop one and keep the other (annuity). If its life I'd say keep it, always comes in handy to your loved ones God forbid an untimely death.

For me the insurance coverage through my employer is sufficient, i rarely make claims but its up to you knowing your age/ lifestlyle choice/ current health situation.

[redmanjp]

Is the insurance life or medical? If its medical I'd say drop it if you are able to drop one and keep the other (annuity). If its life I'd say keep it, always comes in handy to your loved ones God forbid an untimely death.

For me the insurance coverage through my employer is sufficient, i rarely make claims but its up to you knowing your age/ lifestlyle choice/ current health situation.

it's Life- I already have a Guardian Life annuity for retirement

so is it true that the same coverage that costs me $500 now at 37 would cost me $1000 at 40? Is this only if I wait till 40 to take it, or does it also increase even if I take it from now?

so who is the best option- Guardian Life? my rep says so but then again he works for them so he would say that

[Drea]

Is the insurance life or medical? If its medical I'd say drop it if you are able to drop one and keep the other (annuity). If its life I'd say keep it, always comes in handy to your loved ones God forbid an untimely death.

For me the insurance coverage through my employer is sufficient, i rarely make claims but its up to you knowing your age/ lifestlyle choice/ current health situation.

it's Life- I already have a Guardian Life annuity for retirement

so is it true that the same coverage that costs me $500 now at 37 would cost me $1000 at 40? Is this only if I wait till 40 to take it, or does it also increase even if I take it from now?

so who is the best option- Guardian Life? my rep says so but then again he works for them so he would say that

Hmmm, from my personal experience life insurance comes in handy in unexpected situations, my father passed away in a vehicular accident and only through my mother's nagging had he opened a life insurance policy a few years before. The money was a a game changer especially as I was starting university that very year. He was self employed so not covered under a company plan. But both parents were with Sagicor, no delay in issuing the funds, the only hold up was on the part of the police to do their report

I think personal life insurance may be better than the death benefit you may be getting under you company's health plan, but you would know the figures better. Make sure your beneficiaries are set.

[mitsutt]

Is the insurance life or medical? If its medical I'd say drop it if you are able to drop one and keep the other (annuity). If its life I'd say keep it, always comes in handy to your loved ones God forbid an untimely death.

For me the insurance coverage through my employer is sufficient, i rarely make claims but its up to you knowing your age/ lifestlyle choice/ current health situation.

it's Life- I already have a Guardian Life annuity for retirement

so is it true that the same coverage that costs me $500 now at 37 would cost me $1000 at 40? Is this only if I wait till 40 to take it, or does it also increase even if I take it from now?

so who is the best option- Guardian Life? my rep says so but then again he works for them so he would say that

Hmmm, from my personal experience life insurance comes in handy in unexpected situations, my father passed away in a vehicular accident and only through my mother's nagging had he opened a life insurance policy a few years before. The money was a a game changer especially as I was starting university that very year. He was self employed so not covered under a company plan. But both parents were with Sagicor, no delay in issuing the funds, the only hold up was on the part of the police to do their report

I think personal life insurance may be better than the death benefit you may be getting under you company's health plan, but you would know the figures better. Make sure your beneficiaries are set.

Great reading your first hand experience of how life insurance saved and impacted your family. It may not bring back your dad but there is a financial loss when any breadwinner dies and the impact is far worst for self employed families. Imagine you were now starting university but there are families with young kids that now have single or no incomes. Does the dream of university die also? Most times you hear a lot of misinformation about insurance and you don't hear stories like yours and how it truly protects families.

Response to other posts
The tax break for annuities is now 50,000 not 18,000
Also understand the differences of all the plans they each serve different purposes, don't confuse life, health, critical illness and pensions as the same.

Comments ?

[francis1979]

Check the terms and conditions of you life insurance and pension plan to see what is allowable.

FYI: the insurance agent already collected there commissions so they should be more honest in their feedback

With respect to your pension plan if it is government approved; ensure that the total of NIS, company and personal plan contributions is below $50k. If they are above then you are wasting money for anything that you submit to the personal pension plan in excess of the $50k allowance.
The reasoning being is that you will be double taxed. The contribution above $50k is taxed when you receive via salary. Then if you need to withdraw in the event of an emergency or at maturity you will also be taxed ( I.e.if total pension is in excess of personal allowance )

Guardian life allowed me to reduce my annunity with no problem.
Things to check in your contract is the guaranteed rate at maturity. And compare it against annunity management fees.
Another item to note is that annunity can be transferred between insurance companies by law. So you can stop paying and transfer to a next company with Lower management fees.

With respect to life insurance cancellation is based on risk management:
1) considering you company insurance plan + assets: does you dependents have enough money to live a comfortable life without the life insurance that you want to cancel
2) if you are no longer employed with the company what is your plan for coverage to the family
3) if your plan includes life, accident / disability and critical illness. See what value you need for yourself with repsect to critical illness. This is typically overlooked

Like a previous tuner, I am a fan of life insurance because when my dad died due to heart attack. My mom was able to pay off the mortgage from the life insurance. Without that we would have probably lost our house.
But having excessive is a waste of money in my mind.

[ronsin1]

With respect to your pension plan if it is government approved; ensure that the total of NIS, company and personal plan contributions is below $50k. If they are above then you are wasting money for anything that you submit to the personal pension plan in excess of the $50k allowance.
The reasoning being is that you will be double taxed. The contribution above $50k is taxed when you receive via salary. Then if you need to withdraw in the event of an emergency or at maturity you will also be taxed ( I.e.if total pension is in excess of personal allowance )

In most cases this is true but when you have an employer who contributes to your plan as an added benefit most cases the employer matches your contribution to a certain percentage
If you don't increase your contribution they would not increase theirs as such you end up losing on that increment

So you have to calculate your gains and losses to ensure you get the best value

[Redman]

Is the insurance life or medical? If its medical I'd say drop it if you are able to drop one and keep the other (annuity). If its life I'd say keep it, always comes in handy to your loved ones God forbid an untimely death.

For me the insurance coverage through my employer is sufficient, i rarely make claims but its up to you knowing your age/ lifestlyle choice/ current health situation.

it's Life- I already have a Guardian Life annuity for retirement

so is it true that the same coverage that costs me $500 now at 37 would cost me $1000 at 40? Is this only if I wait till 40 to take it, or does it also increase even if I take it from now?

so who is the best option- Guardian Life? my rep says so but then again he works for them so he would say that

Ive never spoken to any elder person who didnt regret not having more life insurance at a younger age.

While there are policies whose premiums increase-there are also policies where the death benefit increase.
the projections will show these details.
Generally I would say the premiums are fixed.
Term is the cheapest-but there are age limits

The younger you are the cheaper it is.

Its a great investment -not for you but to your loved ones.

Get advice on whether to leave a person or your estate as the beneficiary.

[Cheddar]

Before making any decision please sit with or call a financial advisor and review what you have currently and find the best solution to move forward. I say this because once given up, insurance becomes more difficult and more expensive to get back. I am a financial advisor with Maritime and i would be able to do a proper review of your current coverage. Just give me a call on 286-0890 i am always willing to give advice where needed. Remember no one knows exactly what your giving up unless you go through the contracts and best of all my consultations are free of charge.

[francis1979]

Rosin1 you are correct. I am referring to anything in excess of $50k that is submitted into a personal ( not employer) pension plan. Where prior to depositing the money into the annuity it is taxed.
In addition some employers provide an option to take annual bonus and place directly into a government approved annuity prior to being taxed. This is also a good option.

Redman with respect to your comment, life insurance is cheaper at a younger age. However you may be wasting money since coverage is not required. It is worthwhile calculating if it cheaper to wait until it is required for specific scenarios.
As an example below using a US website for illustration let's say a 20 year old with no financial dependents pays $17.82 for $100k for 30years. If he waits next 10years until he is now married and has kids he pays $18.90 for $100k for 20years. So with the increase in premium he pays an extra of $259 for 20 years, but he saved $2138 by not paying insurance when needed for 10years. ( premium rates may be different for Trinidad so speak to an agent and get actual numbers . This is just an illustration to show my point)
I must admit though that there is a risk of higher premiums due to health issues, family history, job type, which may increase your premiums or make you uninsurable. It is a balance.

As stated before insurance is based on risk management and should cover what is required for yourself ( critical illnesses) or loved ones ( life insurance). Then it is a balance with value or coverage vs. cost. While it is nice to have excess if the event of death or illness never materialize then was the excess paid worth it. Or could it haven better used elsewhere for savings, etc.

[Redman]

With respect Francis
The risk of becoming uninsurable is worth the 22 per year....Or 2 per month.

Or dying young.

Or systemic rates increasing due to industry issues.
Life is what happens while you're planning...So a good plan has a cost...i disagree with the term
Wasted.

With a constant review....a young person with a pro active plan will have a lower life cost per unit of coverage.

Dollar cost averaging works on insurance.
As does diversification.
It's a powerful tool.


Insurance is not a one time static purchase.

I advocate revisiting annually and based on financial circumstances buy or increase Benefits regularly.
Within pragmatic limits.

I look forward to your response.

[francis1979]

I agree with you that there is many factors and there is no right or wrong that is why I say it is risk management.

Since we may live to 100 and say wasted investment or die tomorrow ( god forbid) and say excellent investment.

All I am putting out there is that there is different ways of achieving your goals with different factors to be considered based on personal circumstances.

My main reason for highlighting the different items is to ensure people are aware of different considerations and options.

[Kenjo]

Insurance is a risk but does anyone know the average time to get back the money accrued from An annuity?guardian life was giving some story about 6-8 weeks

[mitsutt]

U asking about a pension that u want to surrender? ^^

[Kenjo]

U asking about a pension that u want to surrender? ^^

Confirmed it that it takes about two months to surrender a pension because it has to go back to BIR to take back the 25%?taxes

[mitsutt]

That's correct.

[RedVEVO]

Annuities are ALL a scam.

[jsr]

Can I get any refund on a lapsed annuity.?

[88sins]

Can I get any refund on a lapsed annuity.?

Yes you can close your annuity before maturity. Just keep 2 things in your head.
1-You will have to pay 25% of it in taxes, that you can claim back on your tax returns once your income for the year is below the allowance.
2-If it's with guardian brace yuhself, because you NOT getting back what you put in less tax, because they charge a fee for each month of non payment to the balance. So depending on how much you put in and how long you have let it lapse yuh might feel to slap someone in there.

A girl I know went through that bs with them, iirc they charged her sumn like $100/month for each month she didn't deposit to it.

[jsr]

[quote]
Thanks for the reply

[francis1979]

Annuities are ALL a scam.

Scam may be a little harsh.

However there are man fees which can make it a useless investment and it depends on your circumstances

Government approved
Only good if you are using the tax credit and below your limit
If above your limit you are paying double taxes . Money paid is taxed and when you withdraw it will be taxed if your total earning is above allowance

Non government approved
Don’t waste your time. Fees are extremely high . It is better to save and purchase an au unity at retirement if required


Critical thing is to not sign the contract until you read the terms and condition and understand the fees
Contact is usually returned a few months after 1st premium since it needs to be registered
If you don’t sign the contract you can get a full refund from the agency