Mortality Credit

The mortality credit is also known as the mortality yield. With a participating annuity, premiums paid by those who die earlier than expected contribute to gains of the overall pool and provide a higher yield or credit to survivors than could be achieved through individual investments outside of the pool. The mortality credit increases significantly with age and hedges longevity risk, often creating a return that would be impossible to match in the broader financial markets.

Annuity Duration



Questioning the Need for Bonds in Retirement



A key consideration, though, is...

Calculating the Extra Yield Provided by a Life Annuity

A common question is how annuities compare to other financial products that seem similar such as bonds, certificates of deposit (CD) and money market funds.  After all, each of these products promises to provide some type of fixed return in exchange for your investment. 

Looking at a simple life annuity can help answer this...

Key Phrases Autotag: 

Why Low Interest Rates Have a Silver Lining

As discussed in a recent post, ultra low interest rates are...

Annuity Industry Pioneer Jerry Golden at Work on his Latest Venture

Jerry Golden--often referred to as the father of variable life insurance and variable annuities--has had a distinguished career as an innovator...