In contrast to an individually-owned annuity, a group annuity is an employer-sponsored plan in which the employer makes a single master premium to the insurance company. Employees own units instead of shares and have to observe lock-up periods during which they can’t move their money out. Group annuities may be part of qualified retirement plans such as a 403b or 401K. Group annuity fees--both to employer and employees--are the subject of frequent criticism.
Lafayette Life provides life insurance and annuity products to individuals and small businesses through multiple distribution channels. The individual product portfolio includes whole life, senior age whole life, term life, universal life, immediate annuities, and indexed universal life and annuities.
Lafayette Life Insurance specializes in fixed annuities where interest is credited on a regular basis and funds may be available at any time. Clients may be subject to possible withdrawal charges, income taxes and penalties. The plans include:
Company Type: Insurance Company Phone Number: 765-477-7411 Key Phrases: Key Phrases:A very good article in Forbes magazine discusses the many downsides of using group annuity contracts as a wrapper for 401k plans. This is not to be confused with 401k or defined contribution plans that offer an annuity option within their plans or an annuity option outside of the plans to participants who are retiring or leaving the company. In fact, most of the group annuity wrappers provide no ability to annuitize . The practice is especially common among 401k plans offered by smaller.