Insurance and Annuities

Sharad Rao is a trained professional who can help you identify your financial needs and then determine which financial and insurance products can best help you meet your objectives. Some of the products we often use to serve the needs of our clients include:

Life Insurance

Many people think that life insurance is only for people with families. While it’s true that life insurance can help provide for the needs of dependents, life insurance also can be an important part of a well-thought-out estate, business succession, or charitable giving plan. And permanent life insurance offers many living benefits as well, such as tax-deferred cash value accumulation. For all of these reasons, life insurance can be important for someone starting out—or for someone who's starting over.

Whole life insurance is a type of permanent life insurance that provides lifelong coverage with fixed premiums and a guaranteed death benefit. It includes a cash value component that grows on a tax-deferred basis, which you can borrow against or withdraw. Key benefits include permanent protection, stable costs, and forced savings, but it is generally much more expensive than term insurance.

Term life insurance provides affordable, temporary coverage for a specific period (typically 10–30 years), paying a death benefit to beneficiaries if the insured passes away during that term. It is designed for income replacement and covering debts like mortgages. Premiums are generally fixed, and it does not build cash value

Universal life (UL) insurance is a type of permanent life insurance offering flexible premiums and adjustable death benefits, designed to provide lifelong protection while accumulating tax-deferred cash value. It allows policyholders to adjust payments and coverage amounts as financial needs change, with cash values often accessible via loans or withdrawals.

Variable Universal Life (VUL) insurance is a permanent policy combining lifelong death benefit protection with a cash value component invested in market-based subaccounts. It offers flexible premiums and customizable death benefits, allowing for higher growth potential, but carries significant market risk, higher fees, and potential for policy lapse if cash values fall.

Survivorship life insurance – available as whole life and universal life – covers two people and provides payment of the proceeds when the second insured individual dies. Survivorship life insurance is often used to help meet estate planning or business continuation goals.

Annuities

An annuity is a unique financial vehicle designed to help you accumulate money for your retirement and/or turn a lump-sum of money into a guaranteed stream of income payments. Deferred annuities offer the advantage of tax-deferral and can be used to accumulate money for retirement. Income annuities are used to generate a stream of income payments that is guaranteed to last for as long as you need it to – even for the rest of your life*. Some of the different types of annuities are:

With a fixed deferred annuity, the interest rate on your policy is guaranteed never to fall below a certain amount.* For many people, this provides a measure of security. (A fixed deferred annuity is subject to a sales charge for early withdrawals, which may be subject to income tax. Withdrawals prior to age 59½ are subject to a 10% tax penalty.) *Guarantees are dependent upon the claims-paying ability of the issuing insurer.

A lifetime income annuity is an annuity in which income payments begin one period after the annuity is purchased. It is designed to provide you with predictable income monthly, quarterly, semiannually, or annually, no matter how long you live, and regardless of how the financial markets perform. All guarantees associated with annuity contracts are based on the claims-paying ability of the issuing insurance company. Withdrawals may be subject to regular income tax, and if made prior to age 59½, may be subject to a 10% IRS penalty. In addition, surrender charges may apply.

A variable deferred annuity offers the advantage of tax deferral and can be used to accumulate money for retirement. The policy's accumulated value—and sometimes the amount of monthly annuity benefit payments—fluctuates with the performance of your variable investment account options. There are fees, expenses, and risks associated with the contract. Please be aware that assets allocated to the investment divisions are subject to market risks and will fluctuate in value.

Frequently Asked Questions

Find answers to common queries about our services

Sharad Rao is an agent licensed to sell insurance licensed with various other independent unaffiliated insurance companies in the states of AZ, CA (CA Insurance License #0D52452), CO, DE, FL, GA, IL, LA, MA, MI, MN, NJ, NV, NY, PA, TX, and VA. No insurance business may be conducted outside the states referenced.

Sharad Rao is a Registered Representative of and offers securities products & services through a licensed insurance agency, located at 27 Glenn, Irvine, CA, 92620, 949-337-6000.

Rao Insurance Services Inc.nor its agents or affiliates provide tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.

Insurance and Annuities