Policyowners can also use the Lifetime Income Annuity to protect themselves from the eroding effects of inflation by selecting the Inflation Protection feature, which reduces initial income, but enables payments to increase by either 3% or 5% (whichever you select).(May only be elected if you are over age 59½ at the time of the first income payment .)
The longer you live, the greater the likelihood you'll need some cash for an unexpected expense.
The Lifetime Income annuity has withdrawals features not found on other annuity contracts once you are at least 59½. You can choose Payment Acceleration twice during the life of the policy, which enables you to receive six monthly payments in a lump sum. Here the policyowner would not receive any money for the next five payments; these payments may also be fully taxable.(Not available for tax qualified plans)
There is also a one time only Cash Withdrawal feature, which enables a policyowner to withdraw 30% of the discounted value of the remaining payments selected to be paid based on your life expectancy or your policy's guaranteed minimum payment period (which is longer). A cash withdrawal is only available if the annuity owner is at least 59½ only on the 5th, 10th, or 15th, anniversary of your first income payment or upon proof of a significant, non–medical financial loss, as specified in the policy. Once this option is exercised, future income payments are then reduced by 30%.(Not available for tax qualified plans. The cash withdrawal option is not available in New Jersey, Oregon or Washington. The non–medical financial loss option is not available in Florida and New York.
With this annuity, New York Life continues to create innovative financial products that meet the changing needs of its policyowners and prospects.
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|Lifetime Income Inflation Protection and Withdrawal Features|