Frequently Asked Questions
- Is my money safe at Presidential Life? …Is it FDIC insured?
FDIC Insurance guarantees funds deposited into a Bank. Although your money is not FDIC insured, it is very safe at Presidential Life. You are backed by $3.6 billion in assets with about $370 million in capital surplus as of January 1, 2009.
- How strong is Presidential Life; what would happen to my Annuity or Life Policy if your company failed?
Presidential Life is a very strong insurance company that is backed by $3.6 billion in assets with about $370 million in capital surplus, as of January 1, 2009. As a New York Domiciled Life insurance company, we are regulated by the toughest state insurance department in the country. Presidential Life operates as the only debt free life insurance company in the country today. In 2008, Presidential Life posted a profit, without the aid of government assistance. In the highly unlikely event Presidential Life were to fail, life and annuity policy holders have protection granted to them under the State consumer protection laws. Please contact the Department of Insurance in the state in which you reside for a summary of these protections.
- Do I need an Agent or can I come direct to Presidential Life?
We distribute all of our annuity and life products through knowledgeable independent insurance agents. Since our contracts don’t charge an upfront fee or a sales charge, there is no advantage trying to come direct with Presidential. We highly recommend you deal directly with one of our knowledgeable agents when purchasing any of our products.
- What is the difference between a Fixed annuity and a Variable annuity?
Fixed annuity contracts are tax deferred contracts issued by a life insurance company that offer a guaranteed rate of return. These contracts offer a competitive guaranteed interest rate with no risk to the consumer. Generally, these types of contracts don’t charge an upfront fee or sales charge.
Variable annuity contracts are tax deferred contracts issued by a life insurance company that offer stock market type sub-accounts to invest in. These sub-accounts generally fluctuate up and down daily based upon the performance of the stock & bond markets. The client assumes all the investment risk in this type of contract. On average, most Variable annuity contracts have an annual Mortality and Expense fee of 1.25% -- 1.55%, Fund management fee of .5% – 1.25% and more fees for any other benefit riders. Average fees in a variable annuity can run 3.5% to 5.75% annually. OR Most Variable annuity contracts have annual fees that include a mortality & expense fee, sub account management fee, enhanced death benefit fee & a living benefit fee.