Frequently Asked Questions
Regarding Annuity Flexibility
Will
a life threatening injury to the claimant have an impact on the annuity plan?
Annuity policies can be used
in many ways. Can you illustrate some of the uses?
The
following chart shows how an annuity policy costing approximately $100,000 can
be configured to provide vastly different payouts:
$100,000 to Annuitize |
30 year old male |
Normal life expectancy- 45 years |
Annuity Benefits
|
Guaranteed Payments
|
Projected Payments
|
| 1. $493.40/mo for life with payments guaranteed for 30 years. |
$ 177,624 |
$ 266,436 |
2. $311.72/mo for life increasing 3% compounded annually,
with payments guaranteed for 30 years. |
$ 177,963 |
$ 346,832 |
3. $258.04/mo for life increasing 4% compounded annually,
with payments guaranteed for 30 years. |
$ 173,666 |
$ 374,765 |
4. $209.12/mo for life increasing 5% compounded annually,
with payments guaranteed for 30 years. |
$ 166,724 |
$ 400,758 |
5. $165.66/mo for life increasing 6% compounded annually,
with payments guaranteed for 30 years. |
$ 157,161 |
$ 422,917 |
6. A step annuity as follows:
$ 300/mo for years 1- 5, then
$ 400/mo for years 6-10, then
$ 500/mo for years 11-15, then
$ 600/mo for years 16-20, then
$ 700/mo for years 21-25, then
$ 750/mo for years 26-30, then
$ 805/mo for life, thereafter. |
$ 195,000 |
$ 339,900 |
7. Deferred cash payments as follows:
$ 10,000 paid in 5 years,
$ 15,000 paid in 10 years,
$ 20,000 paid in 15 years,
$ 25,000 paid in 20 years,
$ 50,000 paid in 25 years,
$ 75,000 paid in 30 years,
$150,000 paid in 35 years &
$250,000 paid in 40 years. |
$ 595,000 |
$ 595,000 |
8. Beginning in 15 years, an annuity paying
$962.50/mo
for life increasing 3% compounded annually, with payments guaranteed for 15 years,
thereafter. |
$ 214,817 |
$ 549,469 |
* For Illustrative purposes only. Dated
January 2004
|
|
