Insurance Insights ~ September 1999

What Makes a Roth IRA So Attractive?

In 1997 the Taxpayer Relief Act created a new type of individual retirement annuity called the Roth IRA. This type of IRA is designed to help you accumulate money for your retirement. Here are some reasons why you should look into this type of contribution:

• If you qualify, you can deposit up to $2,000 per individual and $4000 per married couple annually into a Roth IRA.
• Interest earnings on a Roth IRA accumulate and may be received federal income tax free when withdrawn if certain requirements are met.
• Money can be let in a Roth indefinitely. This allows you the opportunity to pass your Roth IRA assets to your beneficiaries without income tax being due.
• In certain circumstances, you can withdraw the amount of your contributions to a Roth IRA, tax free, without incurring any federal early withdrawal penalty.*

Erie Family Life offers its Flexible Premium Retirement Annuity contract to fund your Roth IRA. Here’s why this is an attractive investment alternative:

• A competitive interest rate that offers Policyholders a consistent return on their investment, as evidenced by Erie Family Life’s history of credited rates.
• No premium loads or policy fees.
• Optional waiver of premium benefit.
• Flexible settlement options that can generate a wide range of desirable benefit schedules.
• The financial backing of Erie Family Life Insurance Company, recipient of AM Best’s A+ (Superior) financial rating.

* Some insurance companies have surrender charges which may apply to early withdrawals. Before a decision is made, the assistance of a qualified tax advisor is recommended.

Erie Insurance Reduces Auto Rates

For the second time this year, Erie Insurance Exchange has filed for reductions in its Pennsylvania auto insurance rates. The latest changes, effective 10/1/99, specifically affect married drivers, ages 45-69. Claim statistics clearly indicate fewer losses for this group, and these savings are being passed along in the form of new, reduced rate classes. Reductions for these new classifications are as high as 15%.

The best value in car insurance is now even better! Weimer Insurance and Erie Insurance Group – financial strength, fast 24/7 claim service, local & knowledgeable, plus savings! Quotes are available by completing our on-line quote form.

INSURANCE INSIGHTS is an electronic newsletter published monthly by G. C. Weimer Associates, Inc. Information contained herein is accurate to the best of our knowledge and belief as of 9/1/99. If you have a topic of interest for a future issue, e-mail us at info@gcwinsure.com.