I’m sometimes asked about IRA SPIA payment “increases” after the SPIA start date and upon the death of the joint annuitant. The idea is to encourage a SPIA annuitant/owner to elect a joint and survivor feature with the knowledge if their joint annuitant predeceases them, the annuitant/owner will still get the single life rate! This is commonly referred to as a pension “pop-up” and is a payment feature found in some defined benefit…
Category: 2015
Low Interest Rates? Tip Your Toe in the Annuity Mortality Pool
An annuity mortality pool is the collection of all individuals who purchase life contingent annuity contracts from a life insurance company. Most individuals and agents believe, in order to join this pool and to obtain the mortality discounts these contracts offer for better annuity pricing, they are required to purchase annuity contracts supporting life contingent payments out to age 120 or there-a-bouts. These payments typically are supported by joint and survivor,…
