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PRODUCT KNOWLEDGE

Jeff Long
Sales Director

Securing Your Retirement

The Benefits of a GCU Single Premium Immediate Annuity for Guaranteed Income

n today’s uncertain financial landscape, planning for that starts immediately. Regardless of how long you live,
retirement has become increasingly complex. With you will continue to receive payments, ensuring that you
volatility in markets and uncertainty about the fu- can maintain your standard of living and cover essential
ture of social security, many individuals are seeking expenses throughout retirement.
Iways to ensure a steady stream of income during • Predictable Payments. SPIAs offer predictable pay-
their retirement years. One powerful tool that has ments that are determined at the time of purchase
gained popularity in recent years is the Single Premium based on factors such as your age, the amount of the
Immediate Annuity (SPIA). Offering peace of mind and initial investment, and prevailing interest rates. Unlike
financial security, SPIAs provide a reliable source of guar- other investment vehicles that may fluctuate in value,
anteed income throughout retirement. Let’s explore the SPIA payments remain stable and consistent, providing
benefits of this investment vehicle and how it can help you you with a reliable source of income to budget and plan
achieve your retirement goals. for your retirement expenses.
What is a Single Premium Immediate Annuity? SPIAs • Estate Planning Benefits. In addition to providing life-
are a type of annuity contract where a lump sum of money time income for the annuitant, single premium imme-
is deposited with an insurance company in exchange for a diate annuities can offer estate planning benefits for
guaranteed stream of income that starts immediately, typ- beneficiaries. With certain annuity riders or contract
ically within one year of purchase. Unlike other types of features, you can ensure that any remaining funds are
annuities that may offer deferred payments, SPIAs provide passed on to your heirs or designated beneficiaries af-
immediate income, making them an attractive option for ter your death. This can provide a valuable legacy for
individuals who are already retired or nearing retirement your loved ones while also avoiding the probate pro-
age and seeking to convert a lump sum of savings into cess and potential estate taxes.
guaranteed income.
Conclusion. As individuals approach retirement, en-
Benefits of a Single Premium Immediate Annuity suring a reliable source of income becomes paramount.
• Guaranteed Income Stream. One of the most compel- A GCU Single Premium Immediate Annuity offers a com-
ling benefits of a single premium immediate annuity is pelling solution, providing guaranteed income protection
the assurance of a steady income stream for life. Upon against longevity risk, predictable payments and estate
purchasing the annuity, payments begin immediately planning benefits. By converting a lump sum of money
and continue for the rest of your life, regardless of mar- into a stream of immediate payments, retirees can enjoy
ket conditions or economic fluctuations. This guaran- financial security and peace of mind throughout their gold-
teed income can provide financial stability and peace of en years. However, it’s essential to carefully evaluate your
mind, allowing you to enjoy your retirement years with- financial situation and consult with GCU to determine if a
out worrying about outliving your savings. Single Premium Immediate Annuity aligns with your retire-
• Protection Against Longevity Risk. Outliving your re- ment goals and risk tolerance. With proper planning and
tirement savings, also known as longevity risk, is a com- consideration, a Single Premium Immediate Annuity can
mon concern for retirees. With a single premium imme- be a valuable tool in securing your financial future.
diate annuity, you can mitigate this risk by converting
a portion of your savings into a lifelong income stream

GCU MAGAZINE APRIL 2024 3