Guaranteed Income For Life

When Can I Start Taking Income?

You can choose to start an income stream from your annuity immediately, or at some future date.

You can start taking withdrawals when you need additional cash. Each such withdrawal would be taxable to the extent that the annuity has any undistributed profit. Your principal would be accessible whenever you need it. (Early withdrawal penalties may be charged.)

You can "annuitize" the investment. (This is the method used by most corporate defined benefit retirement plans.) You would give the insurance company your investment in exchange for an income stream, which the insurance company would guarantee* to last for the rest of your life or for a minimum number of years, if you should die early.

• A substantial portion of your distribution will be income tax free.
• Once annuitized, the principal will no longer be accessible.
• Typically, people choose to guarantee* the income stream for "10 years or life". This means that if you should die tomorrow, your heirs would receive income for a full 10 years from the date the income started. If you should live for 50 or more years, the income would be guaranteed* to continue until the day you die. You cannot outlive your income.

• Can I Reduce My Income Tax?
• Back to Income Guaranteed For Life

* Guarantees extend to the claims paying ability of the issuer.