Deferred Income Annuity Quotes
Stan The Annuity Man here, America's annuity agent licensed in all 50 states. I'm all over the place. Regardless of where you are, I'm there, and we can help. You wanted to know about Deferred Income Annuity quotes, also called Longevity Annuities. The paparazzi and the journalists in the financial world love to call them Longevity Annuities because they solve for longevity and they solve for you, not outliving your money. So, in the short answer to your question about getting the quotes, use our Annuity Calculators to get your quote. You can get your quotes on your own terms there. But I want you to hang in there because, in this blog, I'm going to go a little bit deeper into Deferred Income Annuities, how they work, and how you should look at them for income flowing in your portfolio. And then, at the very end, if you hang in there with me and laugh along with all of the stuff I do, I will show you how to get this Deferred Income Annuity owner's manual for free.
Defer Past 13
So, Deferred Income Annuities and trying to get quotes on those. What I call that is income later quotes. A Deferred Income Annuity is, in essence, an Immediate Annuity, a Single Premium Immediate Annuity structure. It's just that if you defer past 13 months, then it turns into a Deferred Income Annuity. Same products, no moving parts, no annual fees, transfer of risk, and payments are based on your life expectancy at the time you take the payments; interest rates play a secondary role. Again, interest rates play a secondary role, not a primary role, as you might think. Keep that in mind. Also, the longer you allow the annuity company to hold onto the money, the more they'll enhance the payment. In the old South, we call that cooking the money.
Let's say you bought a Deferred Income Annuity and you wanted to start the income stream four years from now. There's not some trackable interest rate on the Deferred Income Annuity during that time period. In other words, if your Learjet hits the mountain, whatever money you put in goes to your beneficiary's lump sum without any interest rate. But the longer you allow the company to hold the money, the more they enhance the payout. I know that's not perfect, but it is what it is. There are no annual fees with the Deferred Income Annuities.
Keep in mind as well that Deferred Income Annuities are commodity quotes. They change every 7 to 10 days. You have to quote all carriers. Someone asked me the other day, "Hey, what's your favorite Deferred Income Annuity company?" And my answer is this. The one that provides the highest contractual guarantee for your specific situation. And right now, I don't know that company's name because I haven't run the quote yet. But once we run that quote for you, we'll see who pops up, and it won't be the same company month to month. There's going to be changes. So, you have to keep that in mind.
With Deferred Income Annuities, you can defer from 13 months to 45 years. Now you have to say, who will defer for 45 years? Me. And you say, tell me more, Stan The Annuity Man. Well, I have two daughters, and they're phenomenal kids. They're in their 20s, doing college, showing up to college, being at college, all that stuff. They're great dancers, they're great artists, they can write, they can do all these things that I'm not sure can translate into money. So, I purchased a Deferred Income Annuity on them because I love them. And what's that going to do? Both of them are in their 20s, and I deferred it till they're 50. And when they're 50, a lifetime income stream starts that they can never outlive.
Now, I'll be dead and gone by then, and as I say, I'm not going to leave a legacy; I'll leave a scar. But they're going to say, "Man, I really didn't like my dad, but he was at least cool enough to provide this lifetime income stream that I could never outlive." Because I didn't want to give them a lump sum, so that's who does a 45-year deferral or a 30-year deferral. I did that. They can't get to it. They can't cash it in. They're just going to get a lifetime income stream. So, keep that in mind if you have that wondering ambiguity of a child out there. I'm not saying mine are, but they have tendencies of that. I digress.
So, Deferred Income Annuities, you can set them up in a myriad of ways. Life only, joint life only. Now, what does that mean? It's going to pay for the rest of your life. But when your Learjet hits the mountain, money goes poof. You don't have to structure it that way. You can structure it with what's called an installment refund or a cash refund. You can say, I want it to pay for all my life, but when I die, I want my kids to get payments until the money's gone. And the evil annuity company doesn't keep a penny. Or let's say you want to do joint life only with cash refund, which means that when both of you die, the second spouse dies, whatever's left in the account goes lump sum to your beneficiaries.
Like a Gallon of Milk
What I want you to keep in mind is Deferred Income Annuities; even though it's a combination of return of principal and interest and based on your life expectancy at the time you take the payment, the quotes are customizable. The quotes are like a gallon of milk. They expire every 7 to 10 days, and you have to keep that in mind. Unless you lock it in and start the paperwork, we'll just continue to quote that for you at The Annuity Man.
Let's talk about you for a second and how Deferred Income Annuities could fit into your portfolio. Typically, people that buy Deferred Income Annuities from Stan The Annuity Man are looking to fill what I call the income floor. So, you have the pension, you have Social Security, you have some type of income stream that's coming in, and you need to fill that gap. That's where Deferred Income Annuity quotes work for you, and hopefully, we can handle those for you. But what I'm going to need you to do is either provide me with a lump sum that you're thinking about placing. Preferably, I'd rather you say, "Stan, I need in three years or four years, or seven years or six, whatever, I need $1,322.13 to fill in that gap." I want you to do your homework, sharpen your pencil, and tell us exactly what income amount to fill because we will reverse engineer the quote to find that.
Cost of Living Adjustment
Now in the back of your head, you're saying, "But Stan, how about inflation?" There's no perfect answer to inflation when it comes to annuities. You can attach what's called a Cost of Living Adjustment increase to an annuity. And that sounds great, in theory. By the way, you already own the best COLA annuity on the planet. It's called Social Security because they raise that on their political whims, they, the government. But when you attach an increase to an income stream using an annuity like a Deferred Income Annuity, all the annuity company does is lower the initial payment when compared to the exact same annuity that does not have the COLA. Make sense? Nod your head. They don't give it away visually.
Typically, a Deferred Income Annuity with a COLA is a seven to nine-year breakeven point, give or take. That doesn't mean you shouldn't buy one with a COLA. It might mean that you buy one with a COLA and one without, and you combine it, but there's no perfect answer to inflation. So, with that, when you get your quotes from us, be specific. We'll run everything you want from all standpoints so you can lay it out and look at the quotes, and then we can have a good discussion on what makes the most sense for you from an allocation and proportion standpoint.
Since you're looking at Deferred Income Annuity quotes, haven't I done a video on what is a Deferred Income Annuity? I mean, couldn't Stan The Annuity Man put two and two together to come up with that type of video. Yeah, I did. Click on this link to watch it. I did it a while back. But it's pertinent and timely and informative and factual. So, I suggest you go there and look at that.
Once again, you can get quotes from Stan The Annuity Man by using our Annuity Calculators. You can punch in your numbers there and get your annuity quotes. Remember to get the books for free because I want you to get The Deferred Income Annuity Owner's Manual. We also put the word longevity on there because people call them Longevity Annuities. You can get that by clicking on this link, and magically, you will have it downloaded, and it'll start the process of you becoming informed on these products and understanding the good, the bad, and the limitations, and then contact us for a quote. So, with that, thanks for hanging in there with me, and I'll see you next time.
Never forget to live in reality, not the dream, with annuities and contractual guarantees! You can use our calculators, get all six of my books for free, and most importantly book a call with me so we can discuss what works best for your specific situation.