Annuity Arbitrage
Annuity Arbitrage delivers additional income while adding flexibility to a client’s estate plan. Our short video below shows how you can create lifetime income and replace the money used for the single premium immediate annuity with life insurance. Adding a long-term care or chronic illness rider allows tax-free, dollar-for-dollar, access to the death benefit if needed for care. Any remaining death benefit not used for care is paid to the named beneficiary.
Ingrid’s Annuity Design- Annuity Arbitrage or Split Annuity
Split Annuity
If Ingrid is only looking to maximize income, we can split the assets into a Single Premium Immediate Annuity (SPIA) and a Deferred Income Annuity (DIA). In our example, the SPIA will pay income for 14 years. When the SPIA ends, the DIA will start paying a lifetime income starting in year 15.
Guaranteed Lifetime Income Options
There are three ways you can design guaranteed lifetime income.
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Annuity ALIRT Report
I found this recent ALIRT report very informative. When looking for guaranteed lifetime income, don’t underestimate the importance of working with a high-quality carrier. More carriers are privately owned and some are reinsuring offshore.