Insurance Services

Quality Life Insurance

Some Advisors at NAMCOA may also be a licensed insurance agent and may be licensed in one or more states.  If properly licensed, this Advisor may be able to offer many types or variations of Life, Health, Disability, Critical Illness, Final Expense and Mortgage Protection and Annuity insurance products.  Below is a brief overview of some insurance product types. 

We have not only surrounded ourselves with some of the industry’s top carriers but also an expert staff who will help our clients  with the most competitive quote based on their  current needs and health qualifications.

Single Premium Life Strategies

Single premium life is the perfect solution for clients looking to shelter assets with an ultimate objective of transferring wealth. With its simple issue, accelerated benefits and tax favorable treatment, clients can enjoy the safety and liquidity they seek in their golden years.

Today’s single premium life products differ tremendously than the products of old in that many offer first-year bonuses, return of premium features and indexed linked returns.

More often than not these products are offered as an annuity alternative providing tax deferral, safety of principal and speed of issue with no exams. In addition, they provide accelerated benefits for terminal illness, long-term care or home health care with a tax-free wealth transfer to the next generation.

If a Client has assets they don’t plan to “live on” but rather “leave on”, a single premium life product may be the right solution. With our diverse portfolio of products, we are confident we can help place Clients with even the most difficult life case.

What are Annuities?

An annuity is a contract between you and an insurance company that requires the insurer to make payments to you, either immediately or in the future. You buy an annuity by making either a single payment or a series of payments. Similarly, your payout may come either as one lump-sum payment or as a series of payments over time.

Why do people buy Annuities?

People typically buy annuities to help manage their income in retirement. Annuities provide three things:

  • Periodic payments for a specific amount of time. This may be for the rest of your life, or the life of your spouse or another person.
  • Death benefits. If you die before you start receiving payments, the person you name as your beneficiary receives a specific payment.
  • Tax-deferred growth. You pay no taxes on the income and investment gains from your annuity until you withdraw the money.

What kinds of annuities are there?

There are three basic types of annuities, fixed, variable and indexed. Here is how they work:

  • Fixed annuity. The insurance company promises you a minimum rate of interest and a fixed amount of periodic payments. Fixed annuities are regulated by state insurance commissioners.  
  • Variable annuity. The insurance company allows you to direct your annuity payments to different investment options, usually mutual funds. Your payout will vary depending on how much you put in, the rate of return on your investments, and expenses. The SEC regulates variable annuities.
  • Indexed annuity. This annuity combines features of securities and insurance products. The insurance company credits you with a return that is based on a stock market index, such as the Standard & Poor’s 500 Index. Indexed annuities are regulated by the state insurance commissioners

What are the benefits and risks of variable annuities?

Some people look to annuities to “insure” their retirement and to receive periodic payments once they no longer receive a salary. There are two phases to annuities, the accumulation phase and the payout phase.

  • During the accumulation phase, you make payments that may be split among various investment options. In addition, variable annuities often allow you to put some of your money in an account that pays a fixed rate of interest.
  • During the payout phase, you get your payments back, along with any investment income and gains. You may take the payout in one lump-sum payment, or you may choose to receive a regular stream of payments, generally monthly.

All investments carry a level of risk. Make sure you consider the financial strength of the insurance company issuing the annuity. You want to be sure the company will still be around, and financially sound, during your payout phase.

Variable annuities have a number of features that you need to understand before you invest. Understand that variable annuities are designed as an investment for long-term goals, such as retirement. They are not suitable for short-term goals because you typically will pay substantial taxes and charges or other penalties if you withdraw your money early. Variable annuities also involve investment risks, just as mutual funds do.


How to buy and sell annuities

Insurance companies sell annuities, as do some banks, brokerage firms, and mutual fund companies. Make sure you read and understand your annuity contract. All fees should be clearly stated in the contract. Your most important source of information about investment options within a variable annuity is the mutual fund prospectus. Request prospectuses for all the mutual fund options you might want to select. Read the prospectuses carefully before you decide how to allocate your purchase payments among the investment options.

Realize that if you are investing in a variable annuity through a tax-advantaged retirement plan, such as a 401(k) plan or an Individual Retirement Account, you will get no additional tax advantages from a variable annuity. In such cases, consider buying a variable annuity only if it makes sense because of the annuity’s other features.

Note that if you sell or withdraw money from a variable annuity too soon after your purchase, the insurance company will impose a “surrender charge.” This is a type of sales charge that applies in the "surrender period," typically six to eight years after you buy the annuity. Surrender charges will reduce the value of -- and the return on -- your investment.

Understanding fees

You will pay several charges when you invest in a variable annuity. Be sure you understand all charges before you invest. Besides surrender charges, there are a number of other charges, including:

  • Mortality and expense risk charge. This charge is equal to a certain percentage of your account value, typically about 1.25% per year. This charge pays the issuer for the insurance risk it assumes under the annuity contract. The profit from this charge sometimes is used to pay a commission to the person who sold you the annuity.
  • Administrative fees. The issuer may charge you for record keeping and other administrative expenses. This may be a flat annual fee, or a percentage of your account value.
  • Underlying fund expenses. In addition to fees charged by the issuer, you will pay the fees and expenses for underlying mutual fund investments.
  • Fees and charges for other features. Additional fees typically apply for special features, such as a guaranteed minimum income benefit or long-term care insurance. Initial sales loads, fees for transferring part of your account from one investment option to another, and other fees also may apply.
  • Penalties. If you withdraw money from an annuity before you are age 59 ½, you may have to pay a 10% tax penalty to the Internal Revenue Service on top of any taxes you owe on the income.

Avoiding fraud

Variable annuities are considered to be securities. All broker-dealers and investment advisers that sell variable annuities must be registered. Before buying an annuity from a broker or adviser, confirm that they are registered using the free and simple search tool on

In most cases, the investments offered within a variable annuity are mutual funds. By law, each mutual fund is required to file a prospectus and regular shareholder reports with the SEC. Before you invest, be sure to read these materials.