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United Heritage Life Insurance Company
Single Premium Immediate Annuity
Single Premium Immediate Annuity
is a contract between you and United Heritage Life
Insurance Company. By paying a single sum of money to United Heritage,
you are guaranteed to receive a series of payments over
a specified period of time, or for the rest of your life.
The amount of the payments you receive is determined by
the interest rate set by United Heritage at the time your
contract is issued and by your election of the settlement
options available. Once your contract is issued, your
payments are guaranteed for the duration of your contract.
Tax Favored Payments - When a Single Premium Immediate
Annuity is funded with after-tax dollars, a portion of
each payment you receive is tax-free. The tax-free portion
of each payment is the return of your previously taxed
principal.
If your Single Premium Immediate Annuity
is funded with pre-tax dollars, all payments you receive
will be included in your taxable income for the year in
which the payments are received.
Guaranteed Income - Once your contract is
issued, you will have the peace of mind of knowing that
your payments will not decrease or change until your contract
ends. You will enjoy the financial security of a guaranteed
income. Economic conditions may change, but your payments
are guaranteed to remain the same.
Cost of Living Adjustment (COLA) - When purchasing a Single Premium Immediate Annuity, you have the option of electing a Cost of Living Adjustment (COLA) to your modal payment. You may choose to have the payments increase annually by 1%, 2%, 3%, 4%, or 5%. This election is made at the time of application, and the COLA chosen remains the same for the duration of the Single Premium Immediate Annuity. The COLA option allows you to receive an income stream that will enable you to contend with the rising costs of living in the future.
Convenience & No Investment Risk - The investment
world is a complicated world at best. With a Single Premium
Immediate Annuity, regardless of the interest rate environment,
your payments will continue for the term of your contract.
If you have elected a Life Income settlement option,
payments will continue for as long as you live. There
is no need to make additional investment decisions. Your
payments will be made to you on a regular basis and the
amount of income you receive will be consistent, year
after year.
Choices, Settlement Options - When you purchase
a Single Premium Immediate Annuity, you select the frequency
of your payments. Payments may be made monthly, quarterly,
semi-annually, or annually. You will also select a settlement
option. The settlement option is the length of time payments
will be made. The different settlement options available allow you to structure your Single Premium Immediate Annuity to best fit your needs. You may choose from any of the following
settlement options:
- Fixed Amount of Income
- Period Certain
- Single Life Annuity
- Single Life with Installment Refund
- Single Life with Period Certain
- Joint & Survivor (J&S) Life
- J&S Life with Installment Refund
- J&S Life with Period Certain
Survivor Benefits: When you elect a Joint &
Survivor (J&S) settlement option you may elect to
have the payments decrease after the first death. Payments
may remain at 100% or decrease to 75%, 66 2/3% or 50%
of the original payment.
In a Period Certain settlement option you choose
the number of years for which payments will be made. The
payments will continue for the duration of the period
certain and then cease. If you die before the end of the
stated number of years, your beneficiary will continue
to receive payments for the remainder of those years.
You may elect to receive payments for as little as 5 years
or as long as 30 years.
With a Single Life settlement option, payments
will be made for the rest of your life, regardless of
how long you live. You cannot outlive your income. Payments
will cease upon your death.
You may elect a Single Life with Period Certain
option, which guarantees that payments will be made for
a specified number of years and for the rest of your life
if you live beyond the period certain guarantee.
Single Life with Installment Refund provides that
payments will continue for the rest of your life. If you
die before the total payments you have received are equal
to your initial investment in the contract, any remaining
payments will be paid to your beneficiary in installments.
Joint & Survivor Life options will provide payments
for the lives of two individuals. Joint & Survivor
Life options can be combined with Period Certain
or Installment Refund to guarantee payments, as
with the Single Life options.
Beneficiary Benefits - If your contract has provisions
of Period Certain or Installment Refund, any payments
due after your death will be made to your beneficiary
at the same amount and modal period for the remainder
of the contract.
Issue ages & Deposit Requirements - The Single
Premium Immediate Annuity may be purchased with a minimum
amount of $10,000. Deposits in excess of $250,000 require
Home Office approval. Maximum issue ages for the SPIA
are as follows:
| Settlement Option |
Issue Age |
| Period Certain |
Any Age |
| Single Life |
85 |
| Joint Life |
85 |
| Life w/ Period Certain |
95 |
| Life w/ Installment Refund |
95 |
Payment Delivery
- You may elect to receive your payments monthly, quarterly,
semi-annually, or annually.
You may elect to receive your
payments via Electronic Funds Transfer (EFT) directly
into your checking or savings account. If you elect to
receive payments monthly via EFT, your monthly payments
will be increased by $3.
The Single Premium Immediate Annuity is an excellent
financial tool that can provide you a guaranteed income
stream, tax favored payments, and, if you choose, an income
for the rest of your life, regardless of how long you
live.
Single Premium Immediate Annuity may not be available in all states,
ask your representative.
If you would like information about any of the Products
United Heritage has to offer
Contact Us or
Locate an Agent in your area.
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