TIAA-CREF Life Insurance Company announced today the availability of Lifetime Fixed V, a single premium, after-tax deferred annuity that offers a five-year guaranteed rate of return during the accumulation stage.
Lifetime Fixed V can be purchased with a lump sum of $10,000 or more. At the end of each five-year guaranteed interest period, policyowners have a range of options to consider, including:
- Renewing the contract with a new interest rate that is guaranteed for another five years;
- Taking a lump sum distribution with no surrender charge;
- Receiving income benefits for a lifetime or certain number or years;
- Exchanging the accumulation tax-free to another annuity contract offered by TIAA-CREF Life.
Policyowners can save on a tax-deferred basis until the age of 90 and can access as much as 10% of the initial premium each year with no surrender charge. In addition, systematic withdrawals can be made for as little as $100 and are available as a fixed-dollar amount, a percentage, or as interest earned. Policyowners also have the flexibility to stop withdrawals at any time.
For policyowners planning to annuitize, Lifetime Fixed V offers the following income benefit options:
- Guaranteed Lifetime Income - Income payments for as long as the annuitant or second annuitant are alive. (A guaranteed payment period is also available to the annuitant's beneficiaries as well.)
- Payments for a Fixed Period - Income payments can be set for a specific period of time, ranging from two to 30 years so long as the period does not exceed the annuitant's life expectancy. If the annuitant dies during the fixed period, the remaining payments will go to beneficiaries, or the present value can be paid in a lump sum.
- Lump-Sum Payment - receipt of a lump-sum distribution of all money available in the contract.
John Wesley, TIAA-CREF after-tax annuity product manager, said: "Income payments from a fixed annuity are guaranteed and do not fluctuate, making them invaluable for providing financial stability during retirement."
Currently, Lifetime Fixed V is available in 20 states, and is expected to be available in most states by the end of the year. For information about terms, conditions, and limitations, visit TIAA-CREF