Single Premium Immediate Annuities

Transcription

Single Premium Immediate Annuities
TIAA-CREF Life Insurance Company
Single Premium
Immediate Annuities
Step closer to meeting your lifetime income needs
TIAA: Financial services
Nearly 100 years ago, Teachers Insurance and Annuity Association (TIAA)
began offering retirement products to benefit members of the educational,
medical, cultural, governmental and research communities. In 1999, TIAA-CREF
Life Insurance Company (TIAA Life), a wholly owned subsidiary of TIAA, began
offering additional retirement products to the families of TIAA participants
and to the general public. As a subsidiary of TIAA, TIAA Life continues the
tradition of offering competitive and affordable products.
TIAA and TIAA Life are a part of the TIAA group of companies. Since 1918, our mission
has been to serve those who serve others. In an ever-changing financial landscape,
our financial consultants seek to maintain a high degree of personal and professional
integrity. We believe in making your financial well-being our top priority.
Contact your TIAA Life annuity
representative today.
TIAA.org/annuities
855-200-6530
TIAAlifesales@tiaa.org
Securing a lifetime of retirement income
An immediate annuity adds another paycheck to your retirement
income needs
The good news—more and more of us are living longer. But as life expectancies and
medical costs continue to increase, ensuring that you have adequate income for the
long term has become more essential. We understand the challenges facing retirees
and are here to help you build a retirement income stream to meet your long-term goals.
A Single Premium Immediate Annuity (SPIA) from TIAA Life is one of the solutions we
offer that can help you supplement your Social Security or other pension payments to
help meet your lifetime retirement income needs.1
SPIA creates an immediate income stream from a single lump-sum investment. With
a minimum, after-tax contribution of $25,000, you can tailor your income payments to
suit your preferences and needs. With SPIA, you can allocate your contribution to one
or more of eight variable investment accounts or a fixed account. As your investment
preferences change, you have some flexibility to shift funds among these accounts
with no transfer fees.2
Things to consider before purchasing an SPIA
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How much money do you need to supplement your retirement income?
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Do you need to provide income for yourself only or for another person as well?
Are you (and the other person) in good health?
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Are you interested in the safety of guaranteed income, or are you willing to take
additional risk for the possibility of higher returns?3
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Do you want to receive income for a certain period of time, or for life?
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Do you want to ensure that your income will continue to someone else if you
die prematurely?
1.
Lifetime income is subject to TIAA’s Life’s claims-paying ability. Payments from the variable accounts will rise or fall
based on investment performance.
2.
Some restrictions may apply. Please call us for details.
3.
Past performance is no guarantee of future results. Investment return and principal value will fluctuate so your
investment, when redeemed, could be worth more or less than the original cost.
Single Premium Immediate Annuities
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Setting up your SPIA to help meet your needs
How much income you need and what kinds of guarantees you want are the most
important issues to consider when purchasing your SPIA. When buying your SPIA,
you’ll need to decide how it will provide income and how you’ll invest your assets.
Choose your income
First, do you want income to last for your lifetime or for only a certain number
of years?4
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If you need lifetime income, you’ll need to decide whether the income is needed
for only you or for you and another person (your annuity partner).
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If you need income for only a fixed period of time, you’ll need to decide how many
years you want your payments to last (cannot exceed your life expectancy).
Choose your investments
Second, choose how to invest your savings. You can allocate your assets in fixed
and variable investments to help you optimize your retirement portfolio to meet your
income needs.
A TIAA Life annuity representative can help you determine what’s suitable for your
unique life income needs.
Since this is an after-tax annuity, the portion of the annuity payment that represents earnings will be taxable as ordinary
income tax.
4.
Any guarantees under annuities issued by TIAA Life are subject to its claims-paying ability. Payments from the variable
investment accounts will rise or fall based on their investment performance.
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Your income choices
Your fixed-period annuity choices
You can set up your SPIA to pay you an income for a fixed period ranging from 5 to
30 years. (The fixed period cannot exceed the annuitant’s life expectancy.) If you die
before the end of the period chosen, income will continue to your beneficiaries until
the end of the fixed period. A fixed-period annuity may be appropriate if you’ll have
income needs over a set time period, such as a mortgage or other expenses that will
eventually be paid off.
Your lifetime income annuity choices
You can set up your SPIA to pay an income for life to you, or to you and your annuity
partner. Once selected, the payout option may not be changed.
When you purchase your SPIA, you can choose
A one-life annuity
Guarantees you (only) income for as long as you live.
A two-life annuity
Guarantees lifetime income to you and, upon your death, your annuity partner. The level of income the
surviving annuity partner receives depends on which option you choose:
Full benefit to survivor
Half benefit to annuity partner
Two-thirds benefit to survivor
Upon the death of either you or
your annuity partner, the survivor
will continue to receive the full
amount of lifetime income. This is
the only option in which income
isn’t reduced after a death.
Upon your death, your annuity
partner will receive lifetime
income, but at half the amount
you would have received had you
lived. If your annuity partner dies
before you, there is no reduction
to your lifetime income.
Upon the death of either you or
your annuity partner, the survivor
continues to receive lifetime
income, but payments are
two-thirds of the amount that
would have been received had you
both lived. This is the only option
that reduces your income if your
annuity partner dies before you.
Since this is an after-tax annuity, the portion of the annuity payment that represents earnings will be taxable as ordinary
income tax.
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How your income can survive you
Even if you, or you and your annuity partner die prematurely, a guaranteed period can
ensure that your named beneficiary will receive a portion of your lifetime income. A
guaranteed period is available with both one-life annuities and two-life annuities.
With a guaranteed period in place, your beneficiary will receive income for the rest
of the guaranteed period if you, or you and your annuity partner die before it ends.
Guaranteed periods are not needed for Fixed-Period Annuities since the income will
continue for the remainder of the period chosen should something happen to you.
While you can generally choose from guaranteed periods of 10, 15 and 20 years,
you cannot select a guaranteed period that would continue income beyond your life
expectancy or that of your annuity partner or beneficiary.
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Next, choose how the assets in your SPIA are invested
Once you open your SPIA, you’ll need to decide how to invest5 your annuity assets.
How you invest these assets will determine the income that your SPIA generates for
you. You can choose to receive your annuity income from the Fixed Account, from
one or more of the variable investment accounts, or from a combination of both. You
also choose how frequently you want to receive your payments—monthly, quarterly,
semiannually or annually.
Fixed annuity income
Income from the Fixed Account is guaranteed (subject to TIAA Life’s claims-paying
ability) and will remain the same for the life of the contract, provided you do not make
any transfers to or from the Account.
Variable annuity income
Income from the variable investment accounts may offer a hedge against inflation
due to the potential for higher returns. Your income may increase or decrease
depending on the investment results of the underlying funds. You can choose to
receive your income from one or more of the investment accounts described on the
following pages.
Income you receive from the variable accounts will change based on investment
performance. You can choose to receive the same income for a year at a time, which
may help you with your budget. Or if you prefer to see an immediate change to your
income, you can choose to have your income adjusted monthly. Through monthly
income changes, you’re likely to see less dramatic increases or decreases to your
income than with the annual change. Even if you start out one way, you can change
to the other method for part or all of your income. Requests to alter your income
revaluation method can be made at any time until the close of the markets (usually
4 p.m. ET) on the last business day in March, and are effective on March 31.
5.
Please keep in mind that there are risks associated with investing in securities, including loss of principal.
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Your SPIA investment choices
SPIA offers eight variable investment account options to diversify your annuity
portfolio, as well as the Fixed Account, which provides a guaranteed competitive
rate of interest. Remember, you can also choose to receive a combination of fixed
and variable payments. And you can make transfers between the fixed and variable
accounts. Some restrictions will apply to transfers.
Guaranteed
Fixed Account
Guaranteed mix of Bonds and Cash
Domestic Equity
Large-Cap
Value
Blend
Growth
Large-Cap Value Fund
WW Growth & Income Fund
Growth Equity Fund
WW Social Choice Equity Fund
WW Stock Index Fund
Small-Cap
WW Small-Cap Equity Fund
International Equity
Value
Blend
Growth
International Equity Fund
Large-Cap
Other
Sector Specific
Real Estate Securities Fund
See the prospectus for more information on the variable investments. If you would like assistance choosing
among the variable investment options, please call your annuity representative at 855-200-6530.
There are risks associated with investing in securities, including loss of principal.
Equity funds are subject to market risk, growth stocks may be more volatile than value stocks due to their relatively
high valuations, and growth investing may fall out of favor with investors. Stocks paying relatively high dividends may
significantly underperform other stocks during periods of rapid market appreciation.
Small-cap stocks may have limited marketability and may be subject to more abrupt or erratic market movements than
large-cap stocks.
Funds that invest in foreign securities are subject to special risks, including currency fluctuation and political and
economic instability.
The real estate industry is subject to various risks including fluctuations in underlying property values, expenses
and income, and potential environmental liabilities.
Due to the fact that the social screens in the social choice funds exclude some investments, these funds may not
be able to take advantage of the same opportunities or market trends as funds that do not use such criteria.
Funds that invest in fixed-income securities are not guaranteed and are subject to interest rate, inflation, and credit risks.
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Changing your investment choices after you begin income
Your investment preferences and needs may change over time. We recommend
periodically checking your asset allocation to ensure you’re on track with your goals.
If needed, you can transfer income among the accounts free of charge while you
are receiving annuity payments, subject to certain limitations and restrictions, in the
following ways:
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From one variable investment account to another variable investment account;
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From a variable investment account to the Fixed Account; or
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From the Fixed Account to the variable investment accounts—However, once
assets are transferred from the Fixed Account to a variable investment account,
those assets can never be switched back to the Fixed Account.
Transfers from the investment accounts may be made once per calendar quarter.
Transfers from the Fixed Account are available only under One-Life and Two-Life
Annuities, once per calendar year for up to 20% of the future annuity payments, or all
future annuity payments over five years.
This flexibility allows you to: Secure any potential gains by moving from a variable
investment account to an account with a guarantee; respond to changing market
conditions; and rebalance your asset allocation when you desire.
For complete information on any of the income transfer options, call 855-200-6530 to
speak with one of our annuity representatives.
Tax treatment of annuity income
Only the portion of each annuity payment attributable to interest and/or
earnings is taxable. Generally, your principal is divided equally among the
payments scheduled over your life expectancy or over the number of payments
for a fixed period and returned to you tax free. The taxable portion of SPIA
annuity payments is taxed as ordinary income.
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TIAA Life is here to help
Let TIAA Life’s experience help you through your retirement years. Your annuity
representative can help you create an income stream and portfolio that’s aligned with
your goals.
Guidance—Our knowledgeable annuity representatives can help you assess your
income needs, choose the right lifetime income stream for your current and future
needs, and help you select your investment options within the annuity to help you
meet your income needs. Our consultants will provide the guidance for your unique
financial needs.
Low expenses—Our separate account contract charges are among the lowest cost in
the industry.6 Low expenses and no sales charges put more of your money to work
for what matters most—helping to achieve your supplemental income goals. Also,
there are no fees to transfer your income to other investment choices as your financial
needs change.7
Investment strategy—Our retirement-focused investment strategy is based on seeking
to provide competitive, long-term performance while helping to protect principal
through effective risk management.8
Contact your TIAA Life annuity
representative today.
TIAA.org/annuities
855-200-6530
TIAAlifesales@tiaa.org
6.
According to Morningstar, the average annual annuity expense charge is 1.33% for all non-group variable annuity
policies in Morningstar Direct as of 5/23/2016. TIAA Life’s Single Premium Immediate Annuities total contract
separate account charges are 0.60% (guaranteed maximum charges 1.20%). There are no other contract charges.
7.
In addition to separate account contract charges there are investment fund expenses that range from 0.09% to 0.60%.
8.
While risk management is a key strategy at TIAA Life, no strategy or investment policy can eliminate or anticipate all
market risks.
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Investment, insurance and annuity products are not FDIC insured, are not bank
guaranteed, are not bank deposits, are not insured by any federal government agency,
are not a condition to any banking service or activity, and may lose value.
You should consider the investment objectives, risks, charges and expenses carefully
before investing. Please call 800-842-2252 or log on to TIAA.org/prospectuses for
underlying product and fund prospectuses that contain this and other information.
Please read the prospectuses carefully before investing.
TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributes
securities products. Single Premium Immediate Annuities contract form series:
TCL-1009, TCL-1033, TCL-901, is issued by TIAA-CREF Life Insurance Company, 730
Third Avenue, New York, NY 10017. Each of the foregoing is solely responsible for its
own financial condition and contractual obligations. Not available in all states.
Annuity contracts contain exclusions, limitations, reductions of benefits and may contain
terms for keeping them in force. We can provide you with costs and complete details.
©2016 TIAA-CREF Life Insurance Company (TIAA Life), 730 Third Avenue, New York, NY 10017
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