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Annuity For Life

When someone is shopping for an annuity for life, it can mean multiple things based on their understanding of annuities.  Usually they are looking for either an immediate annuity or a deferred annuity.

If someone is looking to put money into a product and start to draw income immediately:

They would be looking for an immediate annuity.  With an immediate annuity, people give the insurance company money in return for a guaranteed income stream for life.  In the past this could be a bad deal for a consumer if they died prior to their life expectancy but now most annuities come with a guaranteed return of premium feature to avoid this problem.   The most competitive immediate annuities change on a monthly basis but these companies usually are among the most competitive….. Genworth, The Standard, Lincoln, Equitrust, American Equity and Great American.  They commonly have some of the higher immediate annuity payouts Read more

There are more people than ever looking to use a lump sum of money to create a guaranteed future income stream.  Fixed Indexed annuites are usually the most predictible way to do this and they also offer the highest future guaranteed life payouts.

As a result, there are a number of companies offering these types of products and there are even more people selling them.  This includes brokers, insurance agents, CPA’s and CFP’s.  The fact that they put their clients in anything other than the Securit Benefit Secure Income Annuity is disturbing.  Why do I say that?  The reason is that the Security Benefit product has the highest guaranteed payout.   Simply put, they pay a higher income payment than any other company. There is not a trick to the comparison. Its very simple, if you give a company an amount of money, how much will they pay you as an income stream at a future date?  Security Benefit always wins.

If a client is using a different company to create future income, they are not getting the best payout available. Most often this is because the client or the advisor they use are not familiar with Security Benefit. Other times, it relates to the fact that the advisor is not contracted to sell the product.

A Security Benefit illustration is attached. Security Benefit SIA example 100K 59 yr old This is an illustration for a 59 year old male, investing $100,000 and turing on income at age 65. The guaranteed  payout is $8,914  per year for life.  Challenge your broker, financial planner or insurance agent to find a higher payout. I promise you they will not fine one.

* Be aware that Security Benefit has two similarly named products. The Secure Income Annuity has the highest payout.   The Total Value Annuity does not pay out as well but is very unique in its own right but for different reasons.   For more information on the Total Value Annuity click here.

Call Edward Crowe with questions or concerns at 203-796-5403 or by email at Edward@Croweandassociates.com

When someone is shopping for an annuity for life, it can mean multiple things based on their understanding of annuities.  Usually they are looking for either an immediate annuity or a deferred annuity.

If someone is looking to put money into a product and start to draw income immediately, they would be looking for an immediate annuity.  With an immediate annuity, people give the insurance company money in return for a guaranteed income stream for life.  In the past this could be a bad deal for a consumer if they died prior to their life expectancy but now most annuites come with a guaranteed return of premium feature to avoid this problem.   The most competative immediate annuities change on a monthly basis but these companies usually are among the most competitive….. Genworth, The Standard, Lincoln, Equitrust, American Equity and Great American.  They commonly have some of the higher immediate annuity payouts

Take warning: the current interest rate environment is not friendly to immediate annuities.  As a result, you will be subject to very low interest payouts currently.

The second meaning of “annuity for life” is usually someone looking for a deferred annuity.  This means they want to put money in now for a guaranteed payout later.  There are many advantages to a deferred annuity two of which are the higher interest rate they earn and the predictability of them.

The best method for a deferred annuity is to use a fixed indexed annuity with an income rider.  The fixed indexed annuity market was very competitive at one time but it is currently dominated by Security Benefit.  If someone wants deferred income they should be using either the Security Benefit Secure Income Annuity or the Security Benefit Total Value Annuity.  They simply have the highest payouts, end of story. If someone uses a different indexed annuity to produce future income, they are making a mistake.  This sounds harsh but it is the reality currently. This could change any day if a different company comes out with a new product or if Security Benefit makes changes to both products.

This blog holds other articles specific to the Security Benefit products.   Click here for more info on the Secure Income Annuity and Click here for more info on the Total Value Annuity.  Feel free to call Edward Crowe at 860-992-4494 or email at Edward@CroweandAssociates.com