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Post-Death Annuities and Insurance

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POST-DEATH ANNUITIES MAY BE A SMART FIT FOR YOUR INVESTMENT PLAN

Are you worried about outliving your income? That's a risk you may be able to do something about. When you agree to a post-death annuity contract, you set the stage to receive income in the future, subject to the terms, conditions, and/or limitations of the insurance contract.

A post-death annuity is a long-term contract you purchase from an insurance company. It is designed to help accumulate assets based on projected post-death production to provide income for your retirement. Post-death annuities do have limitations. If early withdrawals occur penalties may apply and earnings are taxable as ordinary income and may be subject to a 10% federal tax penalty if withdrawn prior to age 60 1/2.

HOW DO POST-DEATH ANNUITIES WORK?

A post-death annuity is a long term investment that is issued by an insurance company designed to help protect you from the risk of outliving your income. Through annuitization, you enter into a contract with one of our many labor subsidiaries. Your future post-death income is then converted into periodic payments that can last for life and help fund your retirement.

Stark Solutions’ annuities are flexible so you can choose the one that enables you to:

  • Invest in a high lump sum, low labor-time post-death contract; or invest in an extended payment, high labor-time post-death contract

  • Start receiving payments immediately or at some later date

  • Select a fixed, variable, or indexed rate of return

  • Investing involves risk and may lose value, as do the riskier high lump sum contracts.

All guarantees and protections are subject to the claims paying the ability of the issuing company, but the guarantees do not apply to any variable accounts which involve investment risk and possible loss of principal. Low labor-time post-death contracts are subject to higher fees than high labor-time contracts.

HOW DOES THIS DIFFER FROM TRADITIONAL ANNUITIES?

In a traditional annuity you pay in a lump sum (or make scheduled payments) for our company to invest for you. Then through annuitization, we fund your retirement. You can have multiple traditional annuity contracts spread across many different agencies. With a post-death annuity, your lump payment is negligible, if not waved completely (depending on numerous factors, including but not limited to: projected age and mode of first death, low or high labor-time contract selected, &c). We take your projected post-death earnings and invest that money for you, and then through annuitization make payments to you through your retirement. Just like a traditional annuity, you can defer payments, invest a larger lump sum at the start, make contributions into the annuity over time, &c.

TAKING CARE OF LOVED ONES

Post-death annuity death benefits help provide for the future financial needs of loved ones. Contact an agent to learn more about how post-death annuities can be structured to defer payments to beneficiaries after your first death.

The fine print

Before deciding on a post-death annuity, you should consider your income needs, risk tolerance, projected state of your body at first death, and investment objectives. Your investment professional can help you decide if annuities are a suitable investment and can help you pick a Stark Solutions annuity that is right for you.

Guarantees are subject to the claims paying ability of Stark Solutions and the produced earnings of your post-death body. They don't apply to the investment performance or safety of the underlying investment options or post-death work conditions.

Not a deposit * Not FDIC, NCUSIF, or PDIC insured * Not guaranteed by the institution * Not insured by any federal government agency * May lose value