• A single premium immediate annuity is an annuity purchased with one upfront payment. The SPIA begins paying back a portion of the purchase amount plus an interest rate in installments
• Payments can begin anywhere from 30 days to a year after issue
Owner Driven Contract
Qualified & Non-Qualified
Joint ownership is allowed on non-qualified accounts with a spouse as the joint owner only. Each owner must also be an annuitant unless there is a non-person entity owner. Also each spouse must be the beneficiary of the other.
Max Issue Age: 95
The payment stream is fully guaranteed and can not be changed by the company after the issuance of the contract. Income can be for a lifetime, a fixed period or a combination thereof.
$25,000 - $5,000,000
$50,000 for durations between 5-9 years
Free Look Period: 10 days
Options available:
• Period Certain 5/10/15/20/25
• Life Income
• Life Income with Period Certain
• Life Income with Installment Refund
• Life Income with Cash Refund
• Joint & Survivor Life Income
• Joint & Survivor Life Income With Period Certain
• Joint & Reduced Survivor Life Income
• Joint & Reduced Survivor Life Income with Certain Period
• Joint & Survivor Life Income with Installment Refund
• Joint and Survivor Life Income with Cash Refund
• Certain Period – A guaranteed income for your chosen time period 5, 10, 15, 20, 25 years.
• Life Income – A guaranteed income as long as the annuitant lives
• Joint & Survivor Life Income – A guaranteed income for as long as one of the annuitants lives.
• Life Income with Installment Refund – A guaranteed income for as long as the annuitant lives. If the annuitant dies before the total of all payments equals the amount applied to this option, payments will continue to the Beneficiary until the total of all payments equals the amount applied to this option.
• Life Income with Certain Period – A guaranteed income for your minimum chosen time period. If the annuitant is still living at the end of that period, payments continue as long as the annuitant lives.
• Joint & Survivor Life Income with Certain Period – A guaranteed income for your minimum chosen time period. If an annuitant is still living at the end of that period, payments continue as long as any annuitant lives.
• Joint & Survivor Life Income with Installment Refund – A guaranteed income for as long as an annuitant lives. If the last annuitant dies before the total of all payments equals the amount applied to this option, payments will continue to the Beneficiary until the total of all payments equals the amount applied to this option.
• Joint and Reduced Survivor Life Income – We will pay equal benefit payments while both Annuitants are living. Upon the death of one Annuitant: (a) we will continue benefit payments for the life of the surviving Annuitant; and (b) the amount of each continued benefit payment will be the percentage of the initial benefit payment you selected prior to the deceased Annuitant’s death.
• Joint and Reduced Survivor Life Income with Certain Period – We will pay equal benefit payments for the certain period you select. If both Annuitants are living at the end of the certain period, we will continue benefit payments. Upon the death of one Annuitant: (a) we will continue benefit payments for the life of the surviving Annuitant; and (b) the amount of each continued benefit payment will be the percentage of the initial benefit payment you selected prior to the deceased Annuitant’s death. If only one Annuitant is living at the end of the certain period: (a) we will continue benefit payments for the life of the surviving Annuitant; and (b) the amount of each continued benefit payment will be the percentage of the initial benefit payment you selected prior to the deceased Annuitant’s death. Benefit payments after the end of the certain period will automatically cease upon the death of the last Annuitant.
• Lump-Sum – One lump-sum payment of the annuity fund
• If a payment option is not chosen, we will automatically pay under the 10-year certain and life payment option.
Additional options are available in the SPIA
• Life Income with Cash Refund. We will pay annuity benefit payments while the annuitant is living. If the annuitant dies before the total of all paid annuity benefit payments equals the premium amount applied to this payment option, we will make a lump-sum payment to the joint owner, if any, otherwise to the beneficiary so that the sum of all paid annuity benefit payments, including the lump-sum payment, equals the premium amount applied to this payment option.
• Joint & Survivor Life Income with Cash Refund. We will pay annuity benefit payments while either annuitant is living. Upon the death of one annuitant, we will continue annuity benefit payments for the life of the surviving annuitant. If the last annuitant dies before the total of all paid annuity benefit payments equals the premium amount applied to this payment option, we will make a lump-sum payment to the joint owner, if any, otherwise to the beneficiary so that the sum of all paid annuity benefit payments, including the lump-sum payment, equals the premium amount applied to this payment option.
Commutation allows the owner or beneficiary to change how they receive their payments from an income stream to a lump sum
• Upon reaching the Benefit Eligibility Date (1st contract anniversary) of this rider the member or the Beneficiary, as applicable, may request a lumpsum payment of a percentage of the Commutation Value, subject to the Maximum Commutation Value Percentage shown in the contract.
• The benefit availability is limited to Period Certain Only payout options
• The amount of remaining benefit payments, if any, will be reduced or eliminated because of the lump-sum payment.
• The rider is documented and delivered with the contract
• Commissions remain the same
• Application will have all products available
• Application packets will be state driven as certain forms are different by state
• State availability is now the same across Life and Annuities
• Policies will be delivered electronically (email)
• We allow agents to “exercise” the free look in order to receive a higher rate
• There are no exceptions to the 10-day rule
• Interest is credited as of the date of the rate change and does not restart the free look
• Product Disclosures will be maintained separately from the application packet
• Joint ownership allowed only on Non-Qualified Accounts with Spouses as owners, annuitants & beneficiaries
• Purpose of this structure is to facilitate the movement of joint assets from other accounts
• Joint Owners are not permitted on entity owned contracts
• Entity-owned contracts may have Joint Annuitants as long as the annuitants are spouses
In the event of a rate decrease, the new contract will receive the previous higher rate if:
1. the application is signed within 3 business days of the rate change date
2. the application is in good order and if either,
a) If the cash was received with the application, the premium is received by GBU within 7 business days
b) If transfer/1035 exchange, the premium is received by GBU within 60 calendar days