Single Life With Cash Refund
Stan The Annuity Man here. America's annuity agent. Wearing the Stan The Annuity Man sweatshirt with a Stan The Annuity Man hat. With a Stan The Annuity Man Adidas Sweatsuits all logo. Yes, that's important because why not? Why not logo everything? I am America's annuity agent. That's what America's annuity agent does.
What are we talking about today? We're talking about Immediate Annuities that are structured single life with cash refund. You need to know that there are many ways to structure Immediate Annuities. There are probably over 30, but today we will discuss single life with cash refund and compare it to other structures.
So like I said, there are many ways to structure Immediate Annuities. Let's talk about single life with cash refund. What that means, definition-wise, let's break it into two parts. The single life means that it's going to pay you for the rest of your life regardless of how long you live. There's no ROI until you die; Return on Investment. You can set up joint life with cash refund.
That's the life part. Life means life. Life means if you live to 150, the annuity company's on the hook to pay regardless of how long you live. What does the cash refund part mean? That means that when your Learjet hits the mountain, when you die, when you expire when it's over, there is no more time on the clock, basketball analogy. Then whatever's left in your account goes lump sum to the list of beneficiaries of the policy.
You can list as many beneficiaries on that policy as you want. It's a revocable item that you can change the beneficiaries. If someone makes you mad, you can take them off. You can do that at your whim and at your leisure. We can help you with that if you're a client of ours. And why wouldn't you be? We are the best, number one, and licensed in all 50 states.
But single life with cash refund transfers the risk so you can receive a lifetime income stream regardless of how long you live. But you know, as your live jet is going into the mountain, as you're flying in there, you can't pull up, and you're going to hit it. You know that that lump sum left in that account goes to your beneficiary list. That's a morbid example, but I think you're going to remember that.
Now, what happens if you outlive your life expectancy and live forever, and there's zero money in the account at the very end when you die? Then nobody gets anything. What the cash refund really does is it provides you the peace of mind that 100% of any unused money will go lump sum to the list of beneficiaries on that policy, whether it's a Deferred Income Annuity or an Immediate Annuity, whatever you decide to do.
That's the definition. Now, I'm going to go to the whiteboard and draw some things out so we can visually do some examples to draw the point that you understand what it all means. I mean, that's how quick and efficient Stan The Annuity Man is. That's what you're going to expect when you go to our site, and you become a client of the top agent in the country. Who is that? Oh, that's me.
Here we go. So let's talk about life with cash refund. Once again, it's going to pay for your life regardless of how long you live. And then whatever's left in the account upon your demise goes lump sum to the list of beneficiaries. Let's compare it to other types, popular types of structures. Life with installment refund is the same thing. It's going to pay you for the rest of your life. When your Learjet hits the mountain, whatever's left in the account, goes in payment form to the list of beneficiaries. You might want to handcuff those beneficiaries, right? If I buy an Immediate Annuity and my daughters are the beneficiaries, it isn't a cash refund, brother. It's going to be an installment refund because I don't want them showing up to my funeral in a Lamborghini, which they would. Well, they're going to anyway. They'll just be making payments because they're getting an installment refund.
Which Pays More?
The question begs, which one pays more? Think logically. Which one is the annuity company holding onto the money longer? Installment refund. So an installment refund, life with an installment refund, will be a higher contractual guarantee than a life with cash refund. I'm not saying it's better. It is what it is. Logically, annuity companies have the big buildings for a reason, right? Nod your head.
So what's the other ones? Life with period certain, could be life with five years, life with 10 years, or life with 20 years. It all depends upon your life expectancy because a cash refund is based on your life expectancy. If it's a life with five year period certain in your typical 67 year old, something like that, then the life with period certain will pay higher. Once again, when you talk to us by booking a call, we'll run a myriad of quotes and explain them all to you. In fact, on sheet number two of the quote of the PDF that we send you, we list all the types of structuring choices. You can also watch our videos. We're trying to educate you so you can buy the proper structure for your specific situation.
But out of all of these, life with cash refund, life with installment refund, life with period certain, and life only, which pays the highest? Life only. Why? Because when you die, money goes poof, money's gone. It's over. Now, some people don't have any problem with that. They either hate their beneficiaries, or they have enough life insurance for their beneficiaries that they're going to be set up anyway. They just want the highest contractual guarantee.
For instance, with a Qualified Longevity Annuity Contract, life with cash refund is a very popular way to structure a Qualified Longevity Annuity Contract in addition to an Immediate Annuity because it's a lifetime income stream. And the lump sum, if any is left in the account when you die, goes lump sum to the listed beneficiaries. And remember, you can also do joint life, not just your life.
Now, which one's going to be a higher payment? Think logically again. Joint life's going to be less than single life because the annuity company is guaranteeing two-lifetime incomes instead of one. So I always think from the standpoint of the annuity companies, there's no philanthropist at annuity companies. They don't give anything away. They price things based on your life expectancy and how you structure it. I hope this helps, and I hope this thoroughly explains life with cash refund.
A client called the other day and liked the cash refund, the single life with cash refund, but he had four children that he wanted to be the beneficiaries of. And so his next comment was, how do I split that up? Split it up any way you want. They could each get 25% of that total; whatever's left when you die goes lump sum. Or you can; if you like one kid more than the other, then that's your battle you got to deal with.
But you can split it up so the cash refund goes back to the beneficiaries at your discretion. And remember, beneficiaries, those are revocable, not irrevocable, revocable, meaning that you can change them at any time and as many times as you want. You can change the percentages to those beneficiaries as well. If you're choosing life with cash refund, consider who's getting that cash refund. And if you have multiple people getting that cash refund, what percentages do you want them to get?
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