Case Study Kansas cit y life insurance company
Lifetime Income Rider The hypothetical couple shown here are like many people who are still accumulating assets for their retirement and are looking for ways to transition those assets into a retirement income that canâ€™t be outlived. Jeff and Lisa have maxed-out their qualified contributions but are looking for additional ways to create retirement income. They purchase a GrowthTrack fixed annuity and make annual deposits of $12,000. For the first 20 years of the annuity contract they defer withdrawals in order to grow their contract value. In 20 years when Jeff is age 65 and Lisa is age 60, they are ready to start making lifetime income withdrawals.
Jeff 45 years old Lisa 40 years old
Assuming a current crediting rate of 1.75 percent*, the contract value when Jeff and Lisa start receiving lifetime income is $272,887. The Guaranteed Withdrawal Balance** (GWB) is $415,426. The joint Lifetime Income Amount (LIA), payable as long as either Jeff or Lisa is alive, equals $14,540 if they begin lifetime income after 20 years.
Lifetime Income Rider $12,000 Annual Deposits for 20 years Joint Lifetime Income
The coverage described is for the Lifetime Income Rider (LIR) and the GrowthTrack fixed annuity offered by Kansas City Life Insurance Company (Home Office: Kansas City, Mo.). LIR form is R222. GrowthTrack contract form is J179. Form numbers may differ by state. Coverage may not be available in all states.
* Current interest crediting rates are subject to change. **The Guaranteed Withdrawal Balance (GWB) is not available as a lump sum withdrawal amount nor is it a death benefit. The Nursing Home Confinement Enhancement is not available in California, Connecticut, Florida and Maryland.
To learn more about the Lifetime Income Rider, contact your Kansas City Life Insurance Company representative.
LIR Case Study