| Q. |
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| A. |
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| Q. |
Does RAC sell life insurance?
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| A. |
No. We specialize in
Retirement Annuities. It is our special market. We carefully research the annuities
in the marketplace and recommend the ones we believe provide the public with the best
returns. All of the companies we represent are highly rated by Best and are among the
largest underwriters in the world.
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| Q. |
Why have a web site dedicated to
Retirement Annuities?
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| A. |
We believe retirement
planning and retirement income are the most important parts of a person's financial life.
Many spend their early years saving and planning for retirement. The closer one
comes to the day one plans to retire the more important it becomes to know the
resources available provide a good income for the years remaining. Only
annuities can provide a guaranteed income that the retired person cannot outlive.
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| Q. |
Are Annuities complicated and
difficult to understand?
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| A. |
We make annuities simple to
understand and easy to own. An annuity is a contract issued by an insurance company.
Take your annuity policy to a dependable financial adviser for his or her advice. If you
are not completely satisfied, you may return the contract for a full refund within
thirty days. You can not lose when buying retirement annuities through RAC.
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| Q. |
How safe is it to send money through
the mail?
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| A. |
Never send money through the
mail. RAC will never ask you to send money to RAC. When applying for your annuity you will
complete a form instructing the company issuing your annuity where they may transfer funds
from. For example, let's say you are buying a new retirement annuity through RAC and you
want to roll over funds in an IRA account. You will inform the company of your IRA
account number and the name of the bank or savings & loan where the account is
located. The insurance company will handle the transfer of funds and your new annuity will
show the amount of funds transferred to your annuity.
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| Q. |
How does RAC select the annuities to
offer the public?
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| A. |
We research the market to
identify the best buys. For example, we currently recommend two annuities
that both provide all the benefits listed under the features section.
Depending on your current and future needs will determine which one or both
is better for you. Click here for details regarding
these retirement annuities. "The
best on the market," according to RAC.
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| Q. |
Are annuities insured by the Federal
Government?
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| A. |
No. But the states have
insurance guarantee funds protecting the public when buying products from an insurance
company. Most of these funds pay up to $100,000 in the event a policy owner, including an
annuity buyer, suffers any loss. Check with your State Insurance Department for details.
Many financial experts believe the state guarantee funds are comparable to FDIC.
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| Q. |
How can annuities pay so
much higher yields than CDs issued by banks or money market funds?
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| A. |
Because annuities are issued
by insurance companies and insurance companies invest in high grade government and
corporate bonds; therefore, they earn greater yields at lower costs than banks.
Banks tend to make unsecured loans, automobile loans and other forms of high risk lending.
And, banks have large overhead costs. Less risks and lower operating costs result
in higher yields for you, the consumer.
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| Q. |
How can the annuity
company guarantee to pay fixed income for as long as I live?
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| A. |
Insurance companies use
"life expectancy" tables in calculating how long they expect you to live. Some
die sooner while some live longer. Call it the "law of averages" if you please.
What is important is that you cannot outlive your retirement income from your
annuity. And, the company will guarantee to pay for five or ten years - even if
you die before the end of the guaranteed period.
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