What happens to annuities when you die? 99% of all annuity products offer a full death benefit of the account value, or sometimes even more than the account value. I know of at least two annuities that increase your day one death benefit up to 100% of the premium and continue to grow that death benefit perpetually at a multiple of the account value growth. Without any fee, and no medical underwriting. There is only one kind of annuity that can significantly rob your beneficiaries of a death benefit. And it’s called a single premium immediate annuity, also known as a spear.
If purchased with a life only payout, nothing goes to your beneficiaries if you die. A financial professional that is skilled in laddered, inflation, hedged, guaranteed income strategies would almost never offer this type of annuity to their client.
There are very limited circumstances where it might make sense, but it’s rare. If someone is offering you a spear, you should contact us immediately because you can unintentionally disinherit your loved ones.
If you’ve already purchased a spear, you need to contact us to have a legacy rescue strategy that can potentially get all the money your beneficiaries will lose, possibly even more than they would lose back to them tax-free. Sometimes an annuity can provide a better death benefit option then life insurance, but we would need to look at your specific situation to determine that.
If you’d like a complimentary legacy review, schedule your complimentary consultation now. We will review all of your beneficiary designations on all of your investment accounts and insurance policies. To make sure your money goes where it’s intended. Upon passing away.
Have general retirement or financial planning questions we encourage you to contact us to see how we can help make sure your future is secure.