Financial planning decisions can be a challenge for everyone. One area of financial planning that can be especially challenging is decisions about what will happen to your assets after you pass away. If you are near Willoughby, OH, our team at The Merhar Agency LLC can help you find a life insurance policy that will suit your needs. We’ve been working with clients like you since 1955.
Annuities Versus Life Insurance
When you’re talking with one of our agents about life insurance, you may hear about a financial option called an annuity. According to Investopedia, life insurance typically provides a payment to a beneficiary after your death, while an annuity is typically used to get a guaranteed payment for the policyholders’ retirement years. Both annuities and life insurance offer options for pre-death cash payouts and death benefit payouts.
According to Investopedia, beneficiaries of life insurance policies don’t have to pay taxes on death benefits they receive. With an annuity, you must pay taxes on the earnings from your investment, and you may also need to pay taxes on the principle.
With an annuity, withdrawals are expected, but you may have to pay a fee if you withdraw funds before the scheduled withdrawal date. Clients who have permanent life insurance policies have a cash withdrawal amount that you can use while you are still alive.
Call Us to Make Your Appointment Today
There is never a “wrong” time to buy life insurance. Our team at The Merhar Agency LLC has the experience you need to help you select your life insurance policy. Clients near Willoughby, OH have been placing our trust in our team for over 80 years. Give us a call today and let us help you choose a policy that’s right for you.
