Life With Installment Refund Annuity Option

Hey, y'all. Stan The Annuity Man, America's Annuity Agent. I just gave away that I grew up in North Carolina, the Carolinas, because I used the word, y'all. For all you northerners out there, that means you all, for all of you out there. So, what are we here for? Why are we here? We're here to discuss the Single Premium Immediate Annuity structure, single life with installment refund. What the heck does that mean, Stan The Annuity Man? Well, I'm here to tell you, and I'm going to tell you, but I'm also going to talk about not only single life with installment refund but how it compares to all of the other structuring choices. Because annuities are commodity products, you quote all carriers to find the highest contractual guarantee for your specific situation. But what type of contractual guarantee do you need or want? How do you structure it to solve and customize it for your specific situation? That's what we're getting ready to talk about, single life with installment refund.

‌Lifetime Income

‌We're talking about life with installment refund. You're looking to set up a pension-type annuity for you and a spouse or your significant other. What does life with installment refund mean? Let's do the pure definition. Let's break it into life. Guaranteed lifetime income for as long as you live, regardless of how long you live; it's a transfer of risk. It's the benefit proposition that only annuities offer, which is lifetime income. You would think the annuity industry would pound that into the table, and anytime you mention the word annuity, anybody on the planet would say, "Oh yeah, lifetime income." Somehow, that hadn't happened.

‌Annuity Company Will Not Keep a Penny

‌So, what does an installment refund mean? An installment refund means that this is actually a period certain based upon your life expectancy to the day. And it means that if you die early in the contract, 100% of any unused money is paid in payment form, that same payment form you were receiving during your life, but it's paid to your listed beneficiaries until the money's gone. That's what life with installment refund means. The evil annuity company will not keep a penny, regardless of what happens. If you die early, installment refund to the beneficiaries. If you live forever, lifetime income stream for you. Have your cake and eat it, too, right? Maybe. Yes, contractually, that's what life and installment refund means.

‌Let's compare life with installment refund to some other very popular types of structuring choices, and there are many choices. If you need a quote, use our annuity calculators and customize it. Tell us exactly what you want it to do. Two questions. What do you want the money to contractually do? When do you want those contractual guarantees to start?

‌Life With Cash Refund

‌So, life with cash refund, same thing. Lifetime income payment, but when your Learjet hits the mountain, instead of with installment refund, they're getting payments. With cash refund, they get the lump sum. Which pays higher between the two? Think logically. Installment refund. Because the annuity company is holding onto the money. Anytime you let the annuity company have the money for a while, they will enhance the payout. So, life with installment refund is typically higher than life with cash refund because life with cash refund, when your Learjet hits the mountain, the annuity company has to come up with a lump sum to send to your beneficiaries. Which, oh, by the way, beneficiaries are revocable. You can change them at any time, and you have to determine what percentages they will get. That's life with cash refund as opposed to life with installment refund.

‌Life With Period Certain

‌Life with period certain as opposed to life with installment refund. In essence, these are the same thing. An installment refund is a period certain to your specific life expectancy date. That's installment refund. It's a period certain to your life expectancy or, if it's joint life, life expectancies.

‌In essence, it is the same thing, but the shorter the period certain, the higher the payment. If this was life with a five-year certain and this was life with installment refund, and you had a 16-year life expectancy, then the life with a five-year certain would pay more. Does that make sense? Annuities are math. Don't buy sales pitches. These are contracts. Don't believe me, you're going to buy one. You're going to get a contract. Don't buy the sizzle, buy the steak. Don't buy the dream, own the contractual reality.

‌Life Only

‌So, of all these, which one pays the highest? Life only. What's life only? This is my client voice. "I don't want to buy an annuity because an annuity company keeps some money every time you die." That's life only. It's a bad voice, but that's life only.

‌Nothing wrong with that. It's the highest contractual guarantee. Why? Because you're shouldering some of that risk. Does that make sense? It doesn't mean it's good or bad, and it doesn't mean it's better or worse than any of these. What I'm trying to convey to you is that annuity quotes are customizable. There are no perfect answers, just bad sales pitches. What you need to understand and what you need to decide when you contact us is how you want this to be structured. If you want to make sure that there are payments going to people instead of a lump sum, that's great. If you want the lump sum, that's fine. But life with installment refund, what we found, is the most popular choice when your goal is a lifetime income stream, the highest guaranteed lifetime income stream, and making sure that 100% of any unused money goes to the list of beneficiaries. And in this case, installment refund payment form.

‌Client Example

‌Here's the story, and it's a true story, and it was eerily similar to me because when the guy called, he was explaining my two daughters, who are in their 20s. One lives in New York City, and one lives in Colorado; that pretty much explains who they are. Kind of floating through life. Not sure. They're good kids, but the point is, I think if you gave them a lump sum of money, they'd go buy a Lamborghini, and then they fly to Spain. I mean, it's just crazy. And so, the guy that called me goes, "I just don't want my kids to blow through the money." I have a phrase for that. It's called handcuffing your beneficiaries. No, calm down. It's not some crazy handcuffing, being mean. Handcuffing, so that they don't blow through the money. Life with installment refund was what we decided to do for him, and he liked it because payments were coming.

‌And in his case, it was pretty high payments. I believe he set it up to where it was a joint life with installment refund for him and his wife, and it was $5,000 a month, so 60 grand a year. But the installment refund meant that when his wife died, or the second spouse, I'm assuming it's going to be the wife because it's an evil conspiracy that women live longer than men. Nod your head, ladies. Okay, so when the second spouse died, that $5,000 monthly amount was going to continue to go to the kids, the wandering kids, until the money was all gone. He did not want them to get a lump sum. And there might be some of you out there that probably would nod your head with that. But with life with installment refunds, the good news is it's the highest contractual guarantee, lifetime income stream, but making sure that 100% of that money goes to somebody in your family.

‌Conclusion

‌If you live forever, it's going to be you. If your wife lives forever, it's going to be her. But if you both die in a fiery plane crash, right? That's morbid. Then 100% of that money goes to the beneficiaries in payment form until the money's exhausted. That's life with installment refund, and that might be a reason for you to consider it.

‌By the way. Did you know you can get all of my annuity owner's manual books that I have written for free? You can visit my website and download them right away. You can also get quotes using our proprietary annuity calculators. But get the books while they are still free. In fact, there's an Immediate Annuity book. We can do a life with installment refund on that. We have a Deferred Income Annuity book as well. Deferred income annuity quote, life with Installment refund.

‌You can get educated with these books. You can listen to my podcast, Fun With Annuities, on all platforms. Oh, and one more thing. I did this other video on The Best Single Premium Immediate Annuity Payouts and how to get them. But in that video, I covered the basics, and it would correlate well with this blog for you to watch.

‌With that being said, thank you for joining me today. I hope you got a better understanding of life with installment refunds. I'll see you on the following Stan The Annuity Man blog.

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.