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Immediate
Annuity - Guaranteed Retirement Income For Life
Get a regular annuity income payment guaranteed
with a full refund death benefit.
There is only ONE way to
GUARANTEE you will not outlive you money:
A Single Premium Immediate Annuity (SPIA) guarantees you will never
outlive your income. The SPIA provides a regular, guaranteed income payments
for life. In retirement planning the SPIA is the only product that guarantees you will never
outlive your retirement income.
Immediate Annuity
Quote Request Form /
Sample SPIA Quotes
Immediate annuities are usually purchased for the following reasons:
- Guaranteed retirement income planning - Regular
income payment for single or joint lives.
- RMD Required Minimum Distribution at age 70½, when
the IRS Requires Minimum Distributions
from IRAs and other qualified plans for tax purposes.
- To guarantee a regular income need for a specific
period of time, such as the funding of life insurance or long term care
insurance, structuring business buy out sales, assisted living payments or
settlement payments.
- Supplement income from Social Security, help
deferral your Social Security income payment for maximum income
- Provide financial income stability in the event
of a long-term illness or nursing home stays.
The number one problem facing
seniors today is the risk of outliving their money. Several factors
affect the situation including longer life spans, lower interest rates
and the terrible fact that too many seniors have lost too much money
over the last few years due to the drop in the stock market. Many
seniors still possess enough assets to insure a guaranteed lifetime
income at levels which provide a decent standard of living – one which
they can’t outlive. The solution is of course, the lifetime annuity.
We are a huge advocate of the lifetime guarantee income immediate
annuity and the security and peace of mind they offer.
The Single Premium Immediate Annuity (SPIA) is a contract issued by a life insurance
company. The annuity is purchased with a single premium payment which guarantees to
provide regular income payments to you and/or other persons. The SPIA is an immense
product in that it guarantees you will never outlive your retirement savings, no matter
how long you live. And in addition to the tax advantages and convenience of SPIA's, you
can select the frequency and guarantee periods of your income payments from a variety of
income plans:
Tax Consequences
 | Non-qualified or "after tax" monies used to
purchase annuity income have something qualified plans do not. The
Exclusion Ratio or amount of the
annuity payment that is not subject to
income tax since it is considered to be a
return of not only interest but of original
principal "cost basis". The cost basis is
the original investment and is not subject to income tax when distributed
from a Personal Income Annuity. |
| The exclusion ratio is determined by the amounts of principal and interest
being returned. An account with a large amount of credited interest will
have a lower exclusion ratio than a mostly principal payout. |
| For example, if a 60 year old male with
$100,000 and a cost basis of $50,000 purchases an annuity income for life
the payment would be $582 per month of which 29.6% would be tax free.
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| If that same 60 year old had a cost basis of $100,000 the payment is still
$582 per month however, the exclusion ratio would be 59.2%. |
Guaranteed Lifetime Income Options
Life Immediate Annuity
| This option provides a guaranteed income for life. The
income payments will cease upon death. You can elect to guard against
the effects of inflation by annually increasing the payment you receive at a
compound rate of 1% - 7%. |
Installment Refund Immediate Annuity
| This option provides a guaranteed income for life. The total of the
payments received will never be less than the total of the funds paid to
purchase this option or the (principal). If you die before receiving at
least that amount, your beneficiary will continue to receive payments until
the full amount is repaid. |
Cash Refund Immediate Annuity
| This option provides a guaranteed income for life. The total of the
payments received will never be less than the total of the funds paid to
purchase this option (principal). If you die before receiving at least that
amount, your beneficiary will receive the difference in a Lump Sum. |
Life Immediate Annuity With Period Certain
| This option provides a guaranteed income for life plus if death occurs prior to the end of a specified period (5 to 50 years)
the payments
will be transferred to the beneficiary for the remainder of the period,
ceasing at the end of the chosen period. You can guard against the effects
of inflation by annually increasing the payment you receive at a compound
rate of 1% to 7%. |
Joint and Survivor Immediate Annuity
| This option provides a guaranteed income for as long as either joint
annuitant is alive. When either annuitant dies, payments continue to the
survivor and can be a partial percentage, such as two-thirds, or a
full 100% of the payments received when both were living. If you select the
Joint and Survivor Annuity option, you may also add a Period Certain option
of five to 30 years. |
Joint and Contingent Survivor Immediate
Annuity
| This option provides a guaranteed income for as long as you or your joint
annuitant lives. If you die first, the joint annuitant will receive 50% of
the payments you received while living. If the joint annuitant dies first,
you will continue to receive 100% of the payments for as long as you live.
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Period Certain Immediate Annuity
| This option provides a guaranteed income for a time period you specify
(5, 10, 15 or 20 years). If you die prior to the end of this period, your
beneficiary may continue to receive payments for the remainder of the
period. You may also be eligible for the Nursing Home Waiver. If so, and if
you become a nursing home resident for 30 days or more, you may receive a
lump-sum payment equal to the present value of your remaining guaranteed
payments.
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Request an
immediate annuity illustration
76 million
baby boomers born between 1946-1964 will need a retirement income!
With unprecedented longevity, how will boomers
create a
secure and comfortable retirement income without the fear and
risk of outliving their money?
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Fixed
Annuity Experts
