Example Immediate Annuity
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11/01/2009
100% Guaranteed For LIFE With Money-Back Refund
Income begins 1 month after deposit.
Gender / Age 

Monthly Income

Annual Percentage Return P&I

Tax Free Portion
Male 60 $557.38 (B+)
$553.12 (A+)
6.68%
6.64%
57% Tax Exclusion
Male 65 $602.88 (B+)
$597.26 (A+)
7.23%
7.17%
62% Tax Exclusion
Male 70 $661.00 (B+)
$654.68 (A+)
7.93%
7.86%
67% Tax Exclusion
Male 75 $737.80 (B+)
$727.76 (A+)
8.85%
8.73%
74% Tax Exclusion
Male 80 $837.13 (B+)
$822.58 (A+)
10.04%
9.87%
77% Tax Exclusion
Male 85 $965.40 (B+)
$934.60 (A+)
11.58%
11.21%
80% Tax Exclusion
Gender / Age 

Monthly Income / Rating

Annual Percentage Return P&I

Tax Free Portion
Female 60 $530.15 (B+)
$530.56 (A+)
6.36%
6.37%
60% Tax Exclusion
Female 65 $569.51 (B+)
$570.55 (A+)
6.83%
6.85%
64% Tax Exclusion
Female 70 $621.60 (B+)
$624.13 (A+)
7.46%
7.49%
70% Tax Exclusion
Female 75 $691.71 (B+)
$697.28 (A+)
8.30%
8.37%
74% Tax Exclusion
Female 80 $787.78 (B+)
$795.82 (A+)
9.45%
9.55%
77% Tax Exclusion
Female 85 $913.24 (B+)
$912.57 (A+)
10.96%
10.95%
85% Tax Exclusion
Period Certain Yrs

Monthly Income

Per $1,000 Deposit Tax Free Portion
5 Year Certain $1,741.00 (B-)
$1,746.47 (A+)
$17.46 95% Tax Exclusion
10 Year Certain $998.00 (B-)
$979.95 (A+)
$9.98 85% Tax Exclusion
15 Year Certain $724.00 (B-)
$729.55 (A+)
$7.29 76% Tax Exclusion
20 Year Certain $590.00 (B-)
$609.89 (A+)
$6.09 68% Tax Exclusion

Insurance Company Rates (B+ or A+) By A.M. Best (B- On Period Certains)
Based on $100,000 - Life With Installment Refund - Non Premium Tax State
Payment will remain the same for LIFE!

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Immediate Annuities

The Single Premium Immediate Annuity (SPIA) is a contract or in group pricing a certificate issued by a life insurance company. The immediate annuity is purchased with a single premium payment which guarantees to provide regular income payments to the owner annuitant and/or other persons. The SPIA is an immense under used 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:

Some of the Guaranteed Income Plans

Life Only Annuity-- A monthly payment for as long as you live.

Joint & Survivor (Lives Only) -- Payments are guaranteed based upon two lives, usually that of a husband and wife. Full income payments continue until the first death with full or partial payments continuing until the survivor's death.

Life Annuity With Guarantee Period -- Payments are guaranteed for the life of the annuitant (you) until the date of death. If the guaranteed period has not expired at the time of death, payments will continue to the beneficiary for the remainder of the guaranteed period. (Guarantee period may also be applied in the case of Joint & Survivor above)

Installment Refund Life Annuity -- Payments are made as long as the annuitant lives. If the annuitant dies prior to receiving at least the initial premium, any remaining payments will be payable to the beneficiary.

Period Certain Immediate Annuity -- Perfect for meeting regular expenses, payments are made for a fixed period (usually of three or more years). The total of all premium and interest will be distributed during the period of time elected, regardless of death.

Fixed Amount Immediate Annuity -- Payments are made for a minimum of three years and a maximum of 20 years in an amount elected, until the amount applied together with interest is exhausted.

    

Exclusion Ratio

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 $594 per month of which 29% would be tax free.

If that same 60 year old had a cost basis of $100,000 the payment is still $594 per month however, the exclusion ratio would be 58%.

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