Giving Guaranteed Income A Raise
May 3, 2022 by Michael Yavorsky
The development and use of income riders on fixed index and variable deferred annuity contracts over the last number of years has been widespread. Many consumers are now reaching the age to “turn on the income faucet.” But are these the only income options available for clients with deferred annuities? They are not. A single premium immediate annuity is worth a look. SPIAs have seemingly been forgotten as a mechanism to generate guaranteed lifetime income for those with in-force annuities or other funds.
We recently encountered a case for a hard working business owner named Jack. Jack had purchased a deferred annuity with an income rider years ago. Now in his 70s, he’s finally ready to receive income from that vehicle.