Case Study Kansas cit y life insurance company
Lifetime Income Rider This hypothetical story shows how a consumer like Sam can create a customized retirement income solution with a Kansas City Life Insurance Company Single Premium Immediate Annuity to provide immediate income while also using the Lifetime Income Rider on a fixed annuity to gain growth during the rider’s deferral period. At age 60, Sam has $200,000 to work with in his goal to create a sustainable lifetime income. He likes the 7.2 percent growth of the Lifetime Income Rider’s Guaranteed Withdrawal Balance* (GWB) when withdrawals are deferred, but he also needs to receive income right away. He also knows he could get maximum income by using a Single Premium Immediate Annuity (SPIA) but still wants to have access to his contract value for emergencies. With his agent’s counsel, Sam decides to use $100,000 to purchase a 10-year specified period SPIA and $100,000 to purchase a GrowthTrack deferred annuity with the Lifetime Income Rider. This will provide lifetime income and flexibility.
Sam 60 years old
Sam’s initial annual income from the 10-year specified period SPIA equals $10,843**. After 10 years, Sam’s Lifetime Income Amount (LIA) at age 70 equals $11,023. At age 80, Sam is confined to an eligble nursing home. Because of the Lifetime Income Rider’s Nursing Home Confinement Enhancement***, Sam’s LIA increases to $16,534. The LIA income can be stopped and started as needed.
$100,000 into GrowthTrack with LIR $100,000 into a 10-Year specified period SPIA
The coverage described is for the Lifetime Income Rider (LIR), the GrowthTrack fixed annuity and the Single Premium Immediate Annuity (SPIA) offered by Kansas City Life Insurance Company. (Home Office: Kansas City, Mo.) LIR form is R222. GrowthTrack contract form is J179. SPIA contract form number is J134. Form numbers may differ by state. Coverage may not be available in all states. *The Guaranteed Withdrawal Balance (GWB) is not available as a lump sum withdrawal amount nor is it a death benefit. **Actual SPIA amount is based on an assumed interest crediting rates at time of purchase. Current interest crediting rates are subject to change. ***The Nursing Home Confinement Enhancement is not available in all states.
6778
To learn more about the Lifetime Income Rider, contact your Kansas City Life Insurance Company representative.
10.11S