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Another reason people are reluctant to use annuities is they don't trust the companies selling them to remain in business for 10 years or more....
by linkydinkandyou 11y ago
Another reason people are reluctant to use annuities is they don't trust the companies selling them to remain in business for 10 years or more....
- jessriedel 11y agoNot sure about folks' actual reasoning, but I don't think that can be consistently squared with the popularity of life insurance. "The most common terms are 10, 15, 20, and 30 years."
- linkydinkandyou 11y agoYeah, but most people don't "expect" to collect term life. And even if it does pay, you'll be dead! You do expect to collect your annuity payments.
- mikeash 11y agoAlso, if your life insurance company goes under, then you can just buy a new policy from a different company. You only get screwed if you die after the insurance company goes under but before you can buy a new policy. With an annuity, if your insurance company goes under then you are capital-S Screwed.
- jessriedel 11y agoSo you're saying people don't care if their life insurance pays out? I guess they're just buying it to look caring to their family, then?
- aianus 11y agoSurely you would have a claim on their assets in this case? Any lawyers / accountants who can chime in?
- dragonwriter 11y ago> Surely you would have a claim on their assets in this case? Sure, along with all their other creditors. If you don't trust them to remain solvent, you don't trust that claim to be worth much. EDIT: But I don't think that this is actually the problem, just that the claim on assets wouldn't really negate it if it was.
- tsotha 11y agoInsurance companies are pretty heavily regulated for just this reason.