By: Jeff Affronti

June 27, 2016


YES! Immediate Annuities Can Have Liquidity!
Here Is How It Would Work For Male Age 67


I recently met with a sales director from a major carrier. Like many carriers today, the conversation was largely based on income riders since their core fixed products are far from competitive. After exhausting all arguments for an FIA rider over a SPIA for maximum immediate lifetime income, the topic switched to liquidity in the products. Now, aside from interest or systematic withdrawals we rarely receive questions or requests for emergency withdrawals. A common belief is that immediate annuities are not liquid at all and once the contract is issued there is zero cash value. A great thing about SPIAs is that many carriers offer them, adding a bunch of different product features to the overall mix. Income planning has driven these designs over decades. Now, there is a SPIA for nearly all lifetime income needs.  

Here is how the most liquid SPIA in our product grid would work.
All the below figures are GUARANTEED From Day One!  
Male age 67 | $1,000,000 | A+ Carrier | NO FEES 

Income starting in 1 month = $4,750.64 ($57,008 Annually)

  • Surrender end of 1 year = $895,843 
    Death Benefit = $942,992 | Income Received $57,008
  • Surrender end of 2 years = $850,545 
    Death Benefit = $885,985 | Income Received $114,015
  • Surrender end of 3 years = $804,108
    Death Benefit = $828,977 | Income Received $171,023
  • Surrender end of 4 years = $756,350
    Death Benefit = $771,969 | Income Received $228,031
  • Surrender end of 5 years = $707,812
    Death Benefit = $714,962 | Income Received $285,038
  • Surrender end of 6 years = $657,954
    Death Benefit = $657,954 | Income Received $342,046
  • Surrender end of 10 Years = $429,923
    Death Benefit = $429,923 | Income Received $570,077
  • Surrender end of 15 Years = $144,885
    Death Benefit = $144,885 | Income Received $855,115
  • Surrender end of 17 Years = $30,869
    Death Benefit = $30,869 | Income Received $969,131
    No survivor benefit left after 17.54 years
  • Income after 20 years = $1,140,160
  • Income after 25 years = $1,425,200

Liquidity, just one of the many misunderstood features of the immediate annuity. 
What other insurance product can guarantee this liquidity and the ability to withdrawal 5.7% annually for life without the fear of it running out? Now here is an amazing fact, we can get that same 67 male a SPIA for $71,000 (7.1%) annually with the same death benefit minus the liquidity feature. So, when comparing to a liquid SPIA or even an FIA income rider, is the liquidity worth getting 2.00% less income per year!

With the outlook of a quickly rising or hyper-inflating interest rate environment not likely; risk averse individuals truly appreciate the peace of mind the immediate annuity offers. Maximum income and maximum guarantees! 

Jeff Affronti 
Marketing, illustrating, building fixed annuities since 1995!
Thinking about a using SPIA's?
Get immediate annuity case design, quotes and contracting. 

Call 800-373-9697 | | 
California Insurance License #0B91910   


  Send mail to with questions or comments about this web site.
Copyright 2016 - A domain of FSD Financial Services
Last modified: 06/20/15