AAA LIFE AND RETIREMENT SERVICES
In addition to excellent auto and home coverage, AAA Washington Insurance Agency also offers a
variety of life insurance and annuity services. This is just a brief introduction to some of our most
important offerings; however, these products are complex, so it is important to talk with one of
our knowledgeable, experienced financial professionals. They understand the nuances of each
carrier’s pricing and products, and can assist you with finding just the right coverage for your
unique needs.
Rob Thompson
Managing Director
Jon R. Erickson
CFP®, CEBS®
Loreen Leo
CLU®, ChFC®, FLMI
Tim Adkisson
CFP®, CLU®, ChFC®
Our Approach
AAA Washington is your best choice for life insurance and annuities because we can
offer you excellent coverage at a great value. We are able to do this through our strong
relationships with many of the top-rated carriers in the industry, whom we meet with
regularly to keep abreast of new innovations and products. In turn, we can usually offer you
added benefits, better pricing, conversion privileges, underwriting niches, living benefits,
income riders and more. We also treat each client as an individual who has unique coverage
needs: we analyze your life situation thoroughly, and create customized policies to match.
Then, we earn commissions on these policies.
Call Toll-Free: (855) 581-4799 | Email: [email protected] | Fax: (425) 646-2840
LIFE INSURANCE
Life insurance coverage provides your loved ones with better financial security by paying out money when
you pass away, which they can use however they’d like – for funeral expenses, education, mortgage, etc. There
are two main kinds of life insurance: “term” and “permanent.” It can be very confusing trying to determine
which is right for you, as both kinds of coverage have advantages and drawbacks. Our experts will talk with
you about your current situation and future plans, and calculate which type makes the most sense.
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Term Life Insurance
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Permanent Life Insurance
“Term” insurance is usually the most economical way to purchase life insurance, and is practical for
most people who need protection during their working years. It is usually purchased for a level
price over a set period of time - 20 years, for example. If you pass away during the life of the term
policy, the policy amount will be paid to your loved ones; if you outlive the policy, you usually do not
recover any of the premium costs you paid in.
Unlike term insurance, which is designed to pay if you unexpectedly pass away during the term,
permanent life insurance is designed to pay out when you eventually pass away. In other words,
your family will always collect on this type of life insurance, because there is no term to outlive. This
type of policy can also act like a savings account that may earn interest, which you can access and
borrow against. Accordingly, premiums for permanent life insurance are usually much higher than
term life insurance. There are many forms of permanent life insurance, with more riders and benefits;
we have experience finding the right policy for each member’s needs.
Call Toll-Free: (855) 581-4799 | Email: [email protected] | Fax: (425) 646-2840
ANNUITIES
Annuities are investments similar to CDs, but instead of a bank, you invest with an insurance company. This
type of investment is a popular way to manage finances during retirement years. There are three main types of
annuity: fixed, fixed indexed, and income producing.
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Fixed Annuities
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Fixed Indexed Annuities
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Income Producing Annuities
With a fixed annuity, an insurance company holds the money you invest for a set period of time (3 to
10 years), during which they credit a fixed interest rate to the annuity. Your money grows, taxdeferred, until you withdraw it. The interest rate is usually much higher than a CD, but the investment
is not FDIC insured. You can usually withdraw 10% of the investment per year without fees, but if you
enter a nursing home or hospital, or if you pass away, your family can access the money without penalty.
The interest rate you earn with a fixed indexed annuity is variable and tied to an index, such as the
S&P 500. If the market goes up, your interest rate goes up (until it reaches the “CAP,” a set maximum
rate.) If the market goes down, you don’t lose any of your account value, but you also don’t earn as
much (or any) interest. The interest calculation occurs yearly, with the interest you made in the
previous year becoming “locked in.”
These annuities differ from fixed annuities because they provide you with a series of regular, defined
payouts over a period of time, from 5 years to a lifetime. You invest a lump sum of money with an
insurance company, and they guarantee the series of payments, which can start immediately.
We generally suggest this type of annuity for the following situations: to pay your fixed
living expenses once you retire; to provide regular income payments over a specified period of
time; and to insure against outliving your assets.
Call Toll-Free: (855) 581-4799 | Email: [email protected] | Fax: (425) 646-2840