If immediate income is a primary objective of your retirement planning, then Illinois Mutual's immediate annuity may be right for you. With our Single Premium Immediate Annuity (SPIA), you can purchase this contract with a single deposit, and start receiving regular payments after 30 days. Once your SPIA distributes its first payment, it generally cannot be cashed in.
Reasons for Purchasing
Immediate annuities are purchased for many reasons including:
- Security – the annuity provides stable, guaranteed lifetime income which can never be outlived or which may be guaranteed for a specified period.
- Simplicity – the annuitant does not have to manage his investment or markets, nor has to report interest or dividends.
- Good returns – the interest rates used by Illinois Mutual to calculate our Immediate Annuity is generally higher than CD or treasury rates and, since part of the principal is returned with each payment, greater amounts are received than would be provided by interest alone.
- Safety – funds are guaranteed by assets of Illinois Mutual and not subject to the fluctuation of financial markets.
Income Options
The money to purchase an immediate annuity may come from anywhere, but most generally comes by way of transfer from deferred annuities, savings accounts, bank CDs, or tax-qualified retirement plans. Some of the income options available from an immediate annuity include:
Annuity for a Period Certain: You specify the number of years over which you would like to receive annuity payments.
Life Annuity: Payments are guaranteed throughout your lifetime.
Life Annuity with Period Certain: Payments are guaranteed throughout your lifetime, or if longer, a guaranteed period of time. At your death, payments continue to the designated beneficiary for the balance of the guaranteed term which could range from five to 20 years, as selected by you.
Joint and Survivor Annuity: Payments will be made through your lifetime and the lifetime of the joint annuitant designated by you.