Single Premium Immediate Annuity
Whether you are about to retire or already there, ensuring that you have the income today and tomorrow to meet your needs is always a concern.
To give you peace of mind, regardless of what the market is doing, Navy Mutual can provide you with a guaranteed stream of income over a fixed period of time or for your entire life.
Some of the great features our Annuities offer are:
- Guaranteed income, regardless of how the market changes
- Payout periods from 1 year to your entire lifetime
- No loads or commissions to ensure larger payments
What is Navy Mutual's Single Premium Immediate Annuity?
Navy Mutual’s Single Premium Immediate Annuity is a non-qualified fixed annuity contract that will permit you to make a onetime premium deposit which will guarantee a stream of income that can be paid out over the annuitant’s lifetime or for a specified period of years. Navy Mutual allows you to choose from a variety of payment options as explained later.
Features of the Single Premium Immediate Annuity
15 Day Review
The owner of an annuity may terminate his/her contract within 15 days after purchase and receive a full refund of premium placed into the annuity.
Single Premium Amounts
Single premium payments may range from a minimum of $10,000 per contract up to a maximum of $1,000,000 per owner. No additional premiums may be paid into an existing annuity. Any new premiums will be applied to a new annuity contract, subject to the minimum $10,000 requirement. Annuity payments will be calculated based on the amount of single premium deposit and the payment option chosen. Please contact Navy Mutual at 1-800-628-6011 for a payment quote.
Guaranteed Annuity Payment
Navy Mutual will provide a guaranteed annuity payment on all fixed period, life income, and joint & survivor immediate annuity contracts. The guaranteed annuity payment will be specified at the time you purchase the annuity.
Frequency of Payments
Individuals may choose to receive income monthly, quarterly, semiannually, or annually. Payments are made at the beginning of each period. A payment option which is made less frequently throughout the year will receive a lower annual income value than a payout option which is made more frequently. Payout modes may be changed by the owner in the future.
Expenses
Navy Mutual is a nonprofit association which charges no surrender fees, loads, or commissions! With the absence of these charges, Navy Mutual can provide very competitive annuity products.
Safety
You are guaranteed by Navy Mutual to receive at least your guaranteed annuity payment for the life of the annuity.
Annuity Payout Options
Fixed Period
This annuity allows an individual the option of having income paid out over a period of 1 to 30 years. Once the end of the elected fixed period is reached, the entire annuity value will have been paid out and all payments will cease. If the annuitant should die prior to the completion of the fixed period, a designated beneficiary will receive the remainder of the payments. The owner may request to make random lump sum withdrawals from the annuity contract as long as the annuity accumulation value does not drop below the contract’s required minimum value. Making withdrawals will reduce all future annuity payments.
Life Income With No Death Benefit
This option allows an individual to receive the highest monthly income over the course of the annuitant’s lifetime. Payments are guaranteed to continue for the life of the annuitant. Upon the annuitant’s death, payments will cease. No withdrawal options are available under this option. Life annuity options become irrevocable after the 15 day review period.
Life Income With A Fixed Period Certain
Payments are guaranteed to continue during the annuitant’s lifetime. In addition, this option contains a feature that ensures the continuation of payments to a the owner or beneficiary (as applicable) if the annuitant should die within a predetermined period of time, referred to as a period certain. A period certain of 5, 10, 15, or 20 years may be elected. Should the annuitant die during the period certain, payments will continue to a designated beneficiary for the remainder of the period certain. For example, if a 15 year period certain is elected and the annuitant dies in the 11th year, beneficiary will continue to receive the payments for 4 years (15 -11). If the annuitant’s death occurs after the period certain, no additional payments will be paid.
Joint and Survivor Income
Payments are made for the life of both annuitants. Upon the death of one annuitant, the surviving annuitant will continue to receive previously elected percentage of the annuity payment. The owner of the annuity can elect to have 100%, 66 2/3% or 50% of the payment amount paid to the surviving annuitant. Payments cease upon the death of the second annuitant. No withdrawal options are available under this option. The Joint and Survivor Income annuity option becomes irrevocable after the 15 day review period.
Tax-Deferred Exchanges
The surrender value of an existing annuity or permanent life insurance plan can be transferred into a Navy Mutual single premium annuity without incurring an immediate taxable event! This transfer is called a“1035 Exchange”. If an annuity is being exchanged for another annuity, the annuity must be payable to the same person or persons as the original contract, otherwise the transfer does not qualify for the tax-deferred exchange. Please be aware that retirement accounts such as a 401(k), IRA, etc. will not qualify for a 1035 Exchange to any of Navy Mutual’s annuity products. To insure that your transfer will qualify for a tax-deferred exchange, please contact your tax adviser.
Navy Mutual Eligibility for Annuities
Navy Mutual’s Single Premium Immediate Annuity (SPIA) may be purchased on the life of and owned by:
- Any service member of the Navy, Marine Corps, Coast Guard, US Public Health Service, or NOAA, who is either on active duty, a reservist, retired, or an honorably discharged veteran residing in Virginia, North Carolina, or South Carolina.
- A current Navy Mutual Member may apply for additional plans regardless of service status.
- A Navy Mutual SPIA may be purchased on the life of a service member and/or spouse up to age 85 if purchasing a life income option. There is no age requirement if purchasing a fixed period option. SPIA's purchased on the life of a child or grandchild of a service member may be done between the ages 6 months and 24 years.
Any questions about annuities? Contact Navy Mutual Today.
