Bensman Risk Management, Inc.

Insurable Interests

Bensman Risk Management, Inc.
2333 Waukegan Road Suite 275
Bannockburn, IL 60015
847-572-0800 Phone
847-572-0502 Fax

Insurable Interests may offer general financial, insurance, tax and business ideas. However, due to the ever-changing tax laws as well as the complexity of the financial industry, you should seek professional advice before implementing any of the ideas contained in this newsletter. The Bensman Group, Bensman Associates Ltd., Bensman Risk Management, Inc. or Schemata, L.L.C. assumes no liability whatsoever in connection with the use of this newsletter.

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Securities offered through Kestra Investment Services, LLC (Kestra IS), Member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS). Kestra IS and Kestra AS are not affiliated with The Bensman Group, Bensman Associates Ltd., Bensman Risk Management, Inc. or Schemata, L.L.C.

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Insurable Interests

Vol. 9, Issue 7March 2014


Fixed Annuities: An Alternative to Bank Certificates of Deposit

By Allan Carney

Fixed annuities are CD-like investments that are issued by insurance companies, and like bank certificates of deposit, they pay guaranteed rates of interest. The guaranteed interest on these products makes fixed annuities attractive to investors that may be concerned about the possibility of loss when investing in the stock market; an advantage to those with a conservative investment outlook. Another attractive feature with fixed annuities is that any taxes on the interest are deferred until the annuitant cashes in on the annuity.

Currently (February, 2014), the interest rate paid on fixed annuities is substantially higher than that paid on certificates of deposit. Many of the major banks are paying interest rates of 0.5% to 1% on CDs, while rates for fixed annuities currently range from 2% to 4%, depending on the amount invested and accumulation phase of the annuity.

The principal and interest on fixed annuities are guaranteed by the issuing insurance company, but unlike CDs, they are not guaranteed by the U.S. government. Therefore, any investor contemplating the purchase of a fixed annuity should consult with his or her financial professional about the issuing insurance company’s ratings and financial strength. There are many other features of fixed annuities that an investor should understand before making a commitment.

Your agent should be experienced in this area and be aware of the differences and features that make a fixed annuity offered by one insurance company different from that offered by another company. He or she should also ask questions about the needs and concerns of your family and recommend a contract that is best suited to those needs.

If you would like to talk about fixed annuities or any other investment concern, contact us at 847-572-0835 or

Allan Carney is a Wealth Management Specialist and licensed financial advisor specializing in Senior Affairs and is associated with The Bensman Group.

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