Why Combine Life Insurance with an Annuity?
Life insurance protects heirs, while an annuity delivers steady income after retirement. Together, they create a balanced plan that covers both legacy and living expenses.
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Protective Life's Annuity Offerings
Protective Life offers fixed, variable, and indexed annuities. Each type aligns with different risk appetites and income needs.
Fixed Annuities
Provide a guaranteed interest rate and fixed payouts, ideal for conservative investors seeking predictable cash flow.
Variable Annuities
Link returns to underlying investment options. They offer higher growth potential but come with higher risk and fees.
Indexed Annuities
Blend the safety of fixed annuities with market‑linked growth. The payout is tied to a market index, capped by a participation rate.
Tax Advantages
Both annuities and life insurance can offer tax deferral on earnings. Annuities defer taxes until withdrawals, while certain life insurance cash values grow tax‑free under specific policies.
Estate Planning Benefits
Life insurance pays a death benefit that can cover estate taxes or provide liquidity. Annuities can be structured to leave a beneficiary a lump sum or continue payouts after the owner's death.
Fee Considerations
Fixed annuities have low fees, typically 0.5% to 1% of the premium. Variable annuities carry higher management and mortality & expense fees, often 1.5% to 2.5%. Indexed annuities sit between, with surrender fees that may apply early.
Choosing the Right Mix
Assess your retirement timeline, risk tolerance, and legacy goals. If you prefer a steady income now, a fixed annuity paired with a term life policy may suffice. For growth potential, consider a variable annuity alongside a whole life policy that offers a cash value component.
How Protective Life Supports You
Protective Life's customer service includes digital tools that track annuity growth and life insurance coverage. Their online portal provides real‑time statements, beneficiary updates, and educational resources.
Next Steps
Contact a licensed advisor to discuss how Protective Life's annuities can complement your existing life insurance. A tailored plan can provide security for both your heirs and your own retirement income.