Kansas City Life Insurance Company
Single Premium Immediate Annuity Guaranteed income tailored to your needs
Retirement assets can last a lifetime Financial management can be a burden in your retirement years. Because you don’t know how long you will live, it can be difficult to feel confident your resources will sustain you throughout your lifetime. Immediate annuities can provide you with financial security while addressing many of your financial needs. When you purchase a Kansas City Life Insurance Company Single Premium Immediate Annuity (SPIA), you are purchasing a number of guaranteed income payments that can be used within a month from the date you sign the annuity contract. Placing a lump sum into a SPIA allows you to earn interest on your investment while supplementing your income each month. Depending on the payout option you select, a SPIA can even guarantee income payments for life.
A SPIA for all your needs A SPIA can work for you in many ways. For instance, a SPIA can replace income earned by a spouse or parent if you use life insurance death benefits for its purchase. Or, a lump-sum deposit into a SPIA can provide guaranteed child support or alimony payments. In addition, a SPIA can provide periodic income to pay the higher education expenses for your loved ones. Furthermore, a SPIA can fund long-term care and life insurance premium payments.
You can choose from several annuity payout options: n Life only Payments are made to the designated recipient during the lifetime of the annuitant. There is no guaranteed period and no guaranteed total payment amount.
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Certain and life Payments are made for a specified number of years (determined by you, with a minimum of three years and a maximum of 30 years) and continue as long as the annuitant lives. Installment refund Payments are made until the total payments equal the amount of proceeds applied and continue for the rest of the annuitant’s life. Specified period Payments are made for the number of years chosen by the annuitant. (The annuitant may choose a desired income amount which determines the length of the contract, based on the single premium amount invested.) Joint and survivor life Payments are made during the lifetime of two persons. Payments continue until the death of both recipients. Joint and survivor certain and life Payments are made for a specified number of years (determined by you with a minimum of three years and a maximum of 30 years) and continue until the death of both recipients.
SPIA payment schedules The income stream you receive from your immediate annuity can be selected from several payment schedules. You may choose a monthly, quarterly, semi-annual or annual payout. You begin receiving payments one pay period from the date the single premium is received at the Kansas City Life Home Office. For example, if you choose a monthly payment schedule, your payments begin the first full month following the date the single premium payment is received.
SPIA tax advantages If you fund your SPIA contract with after-tax dollars, the income payments you receive are partially taxable. A portion of each payment consists of a return of your single premium amount, and a portion is interest. Only the interest portion is treated as taxable income. Once your basis is received tax-free, all future payments are 100 percent taxable. If you fund your contract with tax-sheltered dollars, the income payments you receive are typically 100 percent taxable because they represent funds that have not been previously taxed. To get a detailed illustration of the SPIA options available based on your needs, please contact us at 800-821-6164, kclcustomerservice@kclife.com.
Kansas City Life – serving policyholders since 1895 A promise of financial security is only as good as the company that makes it. When Kansas City Life makes a promise, we stand behind it. Since 1895, we have assisted policyholders through world wars, the Great Depression and various periods of recession and inflation. Kansas City Life’s reputation is built on integrity, sound investment strategies and honest business practices. To us, integrity is not an outdated notion in today’s fast-paced world. It is the guiding force behind every decision we make. Every product we sell is backed by a century of quality service and financial security.
The coverage described is for the Single Premium Immediate Annuity, a product of Kansas City Life Insurance Company (Home Office: Kansas City, Mo.). Contract form J134. Form number may differ by state.
Security Assured.
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3520 Broadway Kansas City, MO 64111 816-753-7000 www.kclife.com 6705
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