An annuity is an insurance product. The Paragon Asset Protection Annuity has particular insurance provisions that make it quite attractive.
Face Value Protection – The face value of one’s annuity which is never less than the principal amount of his separate account, is protected by a decreasing term-life insurance policy on the annuitant issued by Paragon International Insurance Ltd. or by another reputable insurance provider. This term insurance guarantees that at a bare minimum the beneficiaries will receive all funds in the annuity’s investment account free of debt in the event of the annuitant’s death.
Investment Accounts – These funds may be directed by the policyholder to the Investment vehicle of his choice or, if owned by an insurance trust, through consultation with the trustee and beneficiaries of the trust. The Investment Account grows with tax-deferred compounding. It is liquidated and paid to one’s beneficiaries upon death. The end result is that the beneficiaries may receive benefits far in excess of the face value of the annuity.