Generation Legacy uses two contracts, a period certain single premium immediate annuity (SPIA) and a simplified issue whole life insurance policy. Payouts from the SPIA fund premium payments for the life insurance policy. The design of this product makes it ideal for the transfer of non-qualified annuities and qualified funds.
The single premium is credited to a period of a certain single premium immediate annuity (SPIA) policy upon the issue. Annual SPIA payouts begin immediately and are guaranteed for the full payout duration, subject to provisions of the contract. SPIA payouts are used to fund annual premiums for the life insurance policy. If the annuitant dies during the payout period, the named whole life and SPIA beneficiary will receive the life insurance policy proceeds plus the remaining annuity payouts until the payout duration ends.
The traditional non-participating whole-life policy offers permanent protection with a guaranteed cash value and income tax-free death benefit.
Living Benefits Rider
There are two major living benefits under the policy riders – (1) Terminal Illness and (2) Qualified Nursing Facility and Extended Care. Riders may not be available in all states.
WHOLE LIFE INSURANCE POLICY
Issue Ages
60-80 (age last birthday)
Minimum Face Amount
No specified minimum, the premium is based on the SPIA payout
Maximum Face Amount
$450,000
Maturity Age
This policy has no defined maturity age. For purposes of projecting values in the proposal software, the proposal is deemed to mature at age 100. The cash value is designed to equal the death benefit at age 100.
Cash Values
Cash values are guaranteed and based on the 2017 CSO mortality table.
SINGLE PREMIUM IMMEDIATE ANNUITY
SPIA Type
Period Certain
Issue Ages
60-80 (age last birthday)
10-year Payout- Ages: 60-74
7-year Payout- Ages: 75-80
Minimum SPIA Premium
$5,000
Maximum SPIA Premium
Life premium that purchases up to a $450,000 face
How Generation Legacy Works
SPIA payouts are guaranteed and payable annually for the full period certain duration. Payouts are made at the beginning of each contract year and vary by SPIA duration. On the application, the owner will designate the insurer as the payee of the first and future SPIA payouts which will be used to fund a whole life insurance policy. The owner may change the payee of SPIA payouts. However, naming a payee other than the company may lead to insufficient premiums for the life policy and eventual policy lapse.