Understanding Annuities

My grandmother is terminally ill and my parents are trying to get its finances in order. My parents have taught her two annuities, a POD to my father and my brothers and other POD me.

I remember a college accounting is that the rents paid to the beneficiary a fixed amount for a specified period. My mother does not believe me and think that the value indicated on them is the cash value. My mother and documents are at 4 pm and I have not seen what she's talking.

After my grandmother in peace, I will make copies of business documents to help me better understand, in the meantime, what should we seek to understand what we have and value?

Please do not think we bicker about money when my grandmother was dying. The problem is that it will live out his days in a hospital and a nursing home and did not complementary health insurance, so his successor will have to pony up to 20% are not covered by the government.

Annuities are by defination ... put a block away $ earn an income from it.

The surrender value is only one aspect.

If your mother does not believe u. .. bring to a financial expert who will give her the facts of life.


I strongly recommend against the reverse mortgage.
The mortgagee ends up owning the home instead of the family. However, if nobody wants the house, then its value is. Personally it is not wise unless you are desperate.
It is ignoring the reality of what can and can not rent to
cash value is only what the rent or bond if it is worthwhile and has given nothing to do with the "revenues generated by the same.

Sorry about your grandmother and she does you credit that you want to put its finances in good order.

Your understanding of annuities is perfectly true. They pay some money for a certain period. The period is generally until the death, but not always. The amount paid is usually fixed but may be increased or indexed. Read the terms and conditions carefully and, if necessary, issue the phone co. For more information.

Sorry to hear about your grandmother's dilemma. You're right about the retirement. I think you might want to consider a reverse mortgage on his house. You do not need to repay the money.