History of Annuities!Annuities are extraordinarily popular in modern times, but they're not new. In fact, annuities can actually trace their origins back to Roman times.Contracts during the Emperor's time were known as annua, or "annual stipends" in Latin. Back then, Roman citizens would make a one-time payment to the annua, in exchange for lifetime payments made once a year. During the 17th century, annuities were used as fundraising vehicles. In Europe, governments were constantly looking for revenue to pay for massive, on-going battles with neighboring countries. The governments would then create a tontine, promising to pay for an extended period of time if citizens would purchase shares today. The United Kingdom, locked in many wars with France, started one of the first group annuity called the State Tontine of 1693.Annuities made their first mark in America during the 18th century. In 1759, a company in Pennsylvania was formed to benefit presbyterian ministers and their families. Ministers would contribute to the fund, in exchange for lifetime payments It wasn't until 1912 that Americans could buy annuities outside of a group. The Pennsylvania Company for Insurance on Lives and Granting Annuities was the very first American company to offer annuities to the general public. Annuity growth from that point on was steady, but annuities really started to catch on in the late 1930s. Concerns about the overall health of the financial markets prompted many individuals to purchase products from insurance companies. In the midst of the Great Depression, insurance companies were seen as stable institutions that could make the payouts that annuities promised. The entire country was experiencing a new emphasis on saving for a "rainy day." The New Deal Program introduced by FDR unveiled several programs that encouraged individuals to save for their own retirement. It was around this time, too, that group annuities for corporate pension plans really developed and Annuities benefitted from this new-found savings enthusiasm. Over the years, more features were added to annuities. Some contracts provided checkbook access to funds. Other annuities provided enhanced "bonus" rates, shorter maturity periods, and guaranteed death benefits if the owner passed away unexpectedly. What really boosted the popularity of annuities were the diversification and safety of growth with no market loss on certain variations of Annuities. Annuities are now coming back stronger than ever and with the knod from our Government. Many famous and infamous people have made use of Annuities throughout History, Benjamin Franklin assisting the cities of Boston and Philedelphia, Babe Ruth used them to avoid stock market loss during the great depression. O.J. Simpson in protecting his assets, and even Ben Bernanke in 2006 his major assets were tied into two annuities, to Shaquel Oneal who loves the safety of his Annuities. Annuities structured properly are a definite safety net of protection and growth. Call Today - 1-334-309.4181 |
