Guaranteed Income

Single Premium Immediate Annuities

Are you looking for a safe, guaranteed income that cannot be outlived? One of these Single Premium Immediate Annuities may be right for you.

These annuities allow you to make a single premium payment, and then begin receiving a monthly income, starting one month later and continuing for the rest of your life or for a certain number of years...guaranteed.

This policy may be considered if you wish to convert a tax-qualified rollover, a CD that has matured, or an inheritance into an immediate income.

Minimum single premium:$25,000

Tax advantages of Guaranteed Income

Income payments from the Guaranteed Income are not taxed until received and may not be fully taxable.

Policy features

• Issued at ages 21 through 90 for non tax-qualified plans and tax-qualified plans.
• You may pay a single premium of $25,000 to $1,000,000.
  • Higher premiums may be allowed with Home Office approval.
• These annuities cannot be surrendered, however, income options that include a certain period may allow you to accelerate all or part of the certain period income. Please see the topic "Acceleration of Payments" below. (Acceleration of payments is not available in NJ, OR, PA, TX, and WA.)
• There is a one-time $175 policy fee.
  • In addition, some states assess a premium tax (CA, ME, NV, SD, WV, WY for Non-tax qualified plans, CA and WV for Tax-qualified).

Income payment options

• Life Annuity -- Income is guaranteed for your lifetime.
• Life Annuity with Choice of Certain Period -- Income is guaranteed for the greater of the certain period or your lifetime. Certain periods from 5 through 30 years are available.
• Life Annuity with Cash Refund -- Income is guaranteed for your lifetime. Upon your death, if the total income received is less than your initial purchase payment, any difference is paid in one sum to your beneficiary.
• Joint & Last Survivor Life Annuity -- Income is guaranteed for the greater of your lifetime or your joint annuitant's lifetime.
• Joint & Last Survivor Life Annuity with Choice of Certain Period -- Income is guaranteed for the greatest of your lifetime, the joint annuitant's lifetime, or the certain period. Certain periods of 10, 15, 20, 25, or 30 years are available.
• Choice of Certain Period Annuity -- Income is guaranteed for the certain period (no life income). Certain periods of 5 through 30 years are available.

For certain income options monthly incomes will vary depending on the age and gender of the annuitant, single premium payment amount, income option, state of issue, and policy provisions.

Acceleration of Payments

• You may access all or part of your remaining certain period income under the following income options. (Any amount accelerated may be subject to federal income tax. A 10% penalty may apply if you are less than age 59½). Acceleration reduces the amount of remaining income payments made to you during the certain period:
• Choice of Certain Period Annuity
  • Partial or full acceleration available
• Life Annuity with Choice of Certain Period
  • Partial acceleration available
  • Income payments made to you will be restored to original amount if you survive the certain period
• Joint & Last Survivor Life Annuity with Choice of Certain Period
  • Partial acceleration available
  • Income payments made to you will be restored to original amount if at least one of you survive the certain period
• Acceleration can occur after policy year one
• If acceleration occurs in policy years 2 through 5, a 1% charge applies
• Acceleration requests must be at least $5,000 in amount
• The amount of the income payments made to you after acceleration must be at least $100
• No more than one acceleration request is allowed in a policy year
• A market value adjustment may apply
• Not available in NJ, OR, PA, TX, and WA.

Market Value Adjustments (MVA)
for acceleration of payments

• This adjustment will depend on how prevailing market interest rates have changed since the beginning of the policy.
• The market value adjustment calculation discounts remaining certain period income using a market value adjusted interest rate.
  • If prevailing interest rates have risen, the MVA will increase the amount of the reduction to the remaining certain period income payments.
  • If prevailing interest rates have fallen, the MVA will decrease the amount of the reduction to the remaining certain period income payments.
• Not applicable in NJ, OR, PA, TX, and WA.