Nonbank finance. Group 8 Ashley Lowe Rolla Mooney Shane John Sean W alsh. What is Insurance?. Life Insurance Presbyterian Ministers Fund, PA, 1759 – Present 1000 life insurance companies. Cont…. Stock companies are owned by stockholders, which are 90% of life insurance companies
Weak investment returns on permanent life insurance in the 1970’s led to slow growth of demand for life insurance products.
A financial institution that controls assets and disburses income to people after they have retired. Pension funds, which invest in a variety of securities, control such enormous sums that their investment decisions can have significant impact on individual security prices.
Series of periodic money payments made to a person who retires from employment because of age, disability, or the completion of an agreed span of service. The payments generally continue for the rest of the recipient\'s natural life, and they are sometimes extended to a widow or other survivor. Military pensions have existed for many centuries; private pension plans originated in Europe in the 19th century.
Employer contributions to employee pension is tax deductable.
2- Tax policy enabling self employed individuals to open up their own tax- sheltered pension plans.
Similar to a single-participant 401(k), the maximum contribution to a Keogh plan is the lesser of 25% of employee compensation, or $49,000 (for 2009, adjusted higher in some years).
4-Individual retirement plan.
IRA funds, or Individual Retirement Accounts, offer tax deductible contributions.
Defined benefit plan: is a type of pension plan in which an employer promises a specified monthly benefit .
The statutory definition of defined benefit encompasses all pension plans that are not defined contribution and therefore do not have individual accounts.
Plan is Fully funded: If the contributions into the plan and their earnings over the years are sufficient to pay out the defined benefits when they come due.
Underfunded :If the contributions and earnings are not sufficient (give example)
Private Pension Plans
Public Pension Plans
government employees who have secure benefits and private workers who increasingly are on their own.
When you ultimately retire, you will be faced with making a choice on how to access your pension fund. You will generally be offered the following options: