Help secure your grandchildren’s financial future
Some folks laughingly say that grandchildren are the reward for having lived through their children’s teen years. As most grandparents will admit, it is a reward worth waiting for.
And you’re now at the point where you want to do something special for them. A new gadget, cash, or other gift is OK. However, maybe you’re thinking more in terms of a legacy than just a gift.
This is one reason why New York Life developed the Guaranteed Lifetime Income Annuity (GLI), a fixed immediate annuity.1 Design your own with a Joint Life Option, for example, and this simple, flexible financial tool can help you pass a portion of your assets to your grandchildren … and even your great-grandchildren.
It is a gift that can make a difference for generations to come. How does it work? Let’s illustrate with Betty, a 70-year-old grandmother who has a 5-year-old granddaughter named Meghan. Betty uses $100,000 to purchase a GLI. During her lifetime, receives $3,558.60 of guaranteed income each year.2 When Betty dies, the annuity continues to pay the $3,558.30 to Meghan for the rest of her life, regardless of market fluctuations.3
Betty also includes a 50% death benefit provision in her annuity (chosen at issue). As a result, this gift will keep giving into yet another generation. When Meghan dies, the policy that her grandmother Betty purchased will pay Meghan’s beneficiary 50% of Betty’s original purchase price (known as the premium). So, should Meghan have a daughter and name her the beneficiary, she will receive $50,000 at Meghan’s death.4
As a grandparent, you can find out more about New York Life Guaranteed Lifetime Income Annuity by contacting your New York Life agent. We have provided a very brief overview of just one way this versatile retirement and estate planning tool can benefit you. There are many other attractive features.
Also, please be aware of potential tax consequences. Specifically, note that the income amounts shown are pre-tax dollars. There also may be gift, estate, and generation skipping transfer tax consequences for the grandparent/grandchild joint life option.
1 New York Life Guaranteed Lifetime Income Annuities are issued by New York Life Insurance and Annuity Corporation (NYLIAC), a wholly owned subsidiary of New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010. All guarantees are based upon the claims-paying ability of the issuer.
2 Rates used in this example are based on Lifetime Income Joint Annuity with 50% Death Benefit, 70-year-old female, 5-year-old female, $100,000 premium, rates as of 9/10/2012. Rates are subject to change, and payout will vary with gender, age and life expectancy and payment option selected.
3 This example is for illustration purposes only.
4 The Percent of Premium Death Benefit payout option is not available on qualified policies. It is also not available in New York or Washington.
For most jurisdictions, the policy form number for the New York Life Guaranteed Lifetime Income Annuity is ICC11-P102 (it may be 211-P102). State variations may apply.
This material is for informational purposes only. Neither New York Life nor its agents provide tax, legal or accounting advice. Please consult your own tax, legal or accounting professional before making any decisions.