Create a Legacy of Love For Your Grandchildren

Grandchildren are a special extension of a grandparent’s
love and legacy. A Joint Lifetime Income Annuity is
a simple financial tool that can help you leave a
lifelong inheritance to a beloved grandchild 

A Joint Lifetime Income Annuity creates income for two lives.

Using $100,000 from another investment, a 70-year old man can purchase a Joint Lifetime Income Annuity, naming his 5-year old grandson as the joint annuitant. He can opt for level annual payouts or inflation-adjusted payouts.  

Level payouts: The $100,000 Joint Lifetime Income Annuity will pay out $5,1691 per year guaranteed for the grandfather’s entire lifetime. Upon his death, the Joint Lifetime Income Annuity will continue to pay out the $5,169 for the entirety of his grandchild’s lifetime — a total payout of over $491,000, if the grandchild lives to age 100. Inflation-adjusted payouts: If the 5% inflation adjustment option2 is chosen, the initial annual payments will be substantially lower — $1,435 instead of $5,169 — but the payments will adjust upward each year. As payouts adjust over time, the total payout would equal more than $2.9 million dollars, if the grandchild lives to age 100. Please note that the income amounts shown are pre-tax dollars. There may be gift, estate, and generation skipping transfer (GST) tax consequences for the grandparent/grandchild joint life option. Clients should consult with their own professional advisors to determine the appropriateness of any course of action. A Joint Lifetime Income Annuity is a beautiful way to be remembered and appreciated by your grandchild for many years to come.

 1 Illustration based on a Joint Lifetime Income Annuity, 70-year-old male and 5-year-old male, $100,000 premium, rates as of 4/16/2009. Rates are subjectto change, and payout will vary with age and life expectancy. This hypothetical example is for illustrative purposes only. Illustration assumes a 4/16/1939 date of birth for the grandfather, 4/16/2004 date of birth for the grandson, and an annuity payout start date of 4/23/2010.
Some figures have been rounded to the nearest dollar for presentation purposes.
2 The policy owner must select this option at the time of purchase and be at least age 59 1/2 at the time of the first income payments.

Guarantee of a Lifetime Income Annuity is based on the claims paying ability of the issuer.

395184CV (Exp. 12/23/11)