The average age of retirement in the United States today is 60 years; the life expectancy of someone who retires at that age averages more than 80 years. In order to fully enjoy all those years of quality retirement, you may find that you are in search of a financial option that can:

• supplement your income from Social Security, a pension plan or investments;
• provide financial stability in the event of a long-term illness or nursing home stay; and
• ensure you won’t outlive your savings.

Standard Insurance Company’s Single Premium Immediate Annuity is designed precisely to insure against outliving your income. The SPIA can provide you or a loved one with regular, guaranteed income payments for life (or a specified period of your choice). The SPIA is an excellent way to maintain an income stream that is matched to your personal financial needs.

While you may consider purchasing an income annuity at any time, the most common events that accompany this decision are:

• retirement;
• attainment of age 70½, when IRS Required Minimum Distributions become necessary from IRAs and other qualified plans; or
• the distribution of a large sum of money, such as death benefits from a life insurance or annuity contract, a divorce settlement or funds received from the sale of a business.

Single Premium Immediate Annuity
 

If you’d like a copy of the SPIA brochure, contact one of The Standard’s annuity specialists at (800) 247-6888.
 

Tax Consequences

Each payment generated from your purchase of a SPIA will generally be partially taxable and partially a non-taxable return of premium in the year in which you receive it (this is known as “exclusion ratio” treatment). The taxable amount of your payments also will be determined based on the tax status of the funds. Additionally, people often move to a lower tax bracket during this time of their lives and will likely pay less in taxes than they would have just a few years earlier. Your financial advisor can tell you more.

Guaranteed Lifetime Income Options

Life Annuity

This option provides a guaranteed income for as long as you live. The income payments will cease upon your death. You can elect to guard against the effects of inflation by annually increasing the payment you receive at a compound rate of 2%, 3%, 4% or 5%.

Installment Refund Annuity

This option provides a guaranteed income for as long as you live. The total of the payments you or your beneficiary receive will never be less than the total of the funds paid to purchase this option. If you die before receiving at least that amount, your beneficiary will continue to receive payments until the full amount is repaid.

Period Certain and Life Annuity

This option provides a guaranteed income for as long as you live. If you die prior to the end of a specified period (5, 10, 15 or 20 years) your payments will be transferred to your beneficiary for the remainder of the period, ceasing at the end of the chosen period. You can guard against the effects of inflation by annually increasing the payment you receive at a compound rate of 2%, 3%, 4% or 5%.

Joint and Survivor Annuity

This option provides a guaranteed income for as long as you or your joint annuitant lives. When either annuitant dies, payments continue to the survivor and can be two-thirds or 100% of the payments received when both were living. If you select the Joint and 100% Survivor Annuity option, you may also add a Period Certain option of five or more years.

Joint and Contingent Survivor Annuity

This option provides a guaranteed income for as long as you or your joint annuitant lives. If you die first, the joint annuitant will receive 50% of the payments you received while living. If the joint annuitant dies first, you will continue to receive 100% of the payments for as long as you live.

Regular Installment Income Options

Period Certain Annuity

This option provides a guaranteed income for a time period you specify (5, 10, 15 or 20 years). If you die prior to the end of this period, your beneficiary may continue to receive payments for the remainder of the period. You may also be eligible for the Nursing Home Waiver. If so, and if you become a nursing home resident for 30 days or more, you may receive a lump-sum payment equal to the present value of your remaining guaranteed payments.
The nursing home waiver is not available in Massachusetts. These features are not available on any of the guaranteed lifetime income options at the left. Exercising these options may represent taxable events with or without additional tax penalties.

Freedom to Change Your Mind

From the date you receive your annuity contract, you have 30 days to consider your decision. If you decide to terminate the transaction during the 30 days, we will return your premium.

Integrity and Stability

Since 1906, The Standard has been dedicated to treating customers with integrity — a philosophy that results in strong financial strength ratings.

The following applies if the annuity is purchased through a bank or a credit union: (a) the annuity is not a deposit; (b) the annuity is not guaranteed by any bank or credit union; (c) the annuity is not insured by the FDIC or any other governmental agency; (d) the purchase of an annuity is not a provision or condition of any bank or credit union activity; and (e) some annuities are subject to investment risk and may go down in value.

Product availability varies by state.

Policies: SC-0-5

12471 (08/05)