Annuities are an insurance product intended to create a guaranteed stream of income over a set period of time often for the life of the annuitant.

How to invest in insurance annuities. If youre going to sell insurance you will need an insurance agent license. You list the companys Net Earned Premiums. However annuities can be considered security rather than an insurance policy.

Youll have to report the money you get from an annuity as income when you file your taxes. Investing Specialists How to Invest in an Annuity If youve decided to purchase an annuity youll also need to think through where to hold it how much to. In this interview for Retirement Daily WMCP Program Director Michael Finke explains how these products can be used most effectively to provide a tax-advantaged investment in the future for clients.

Bonds can provide a dependable stream of interest income until maturity. Knowing the special circumstances that insurance companies operate under helps in evaluating whether or not a listed insurance company is a good investment. How to Invest in Annuity You can invest in an annuity plan in 4 simple steps.

Start by projecting the companys Direct Written Premiums how much theyre selling themselves and then how much in. Owner The Insurance Pro Blog Money used to purchase fixed and indexed annuities are primarily invested in bond. This annuity combines features of securities and insurance products.

The insurance company credits you with a. If youre going to sell fixed annuities this wont require a securities license. That last part the ability to borrow from the insurance company against the cash value is an unusual financial benefit and certainly deserves to go in the pros column of any investment.

Obviously this is a simplified. There is a small amount of investments placed in other assets like commercial real estate mortgages and stocks. You may need a large amount of money to buy an annuity.