Estate Planning & Fixed Annuity Forum.
Sign up  |   |   |  Calendar

  Author   Comment  

Avatar / Picture

Posts: 373
Reply with quote  #1 

The Annuity Date or Maturity Date (see actual Policy Data Page below)


An annuity contract’s Maturity Date or Annuity Date is...  the most  ...misunderstood contract provision.


Here’s what trial attorneys claim:

 “Agents seek out the elderly, because in most cases the annuity's maturity date is beyond the buyer's actuarial life expectancy.”


Here’s what stock brokers and bankers claim:

"You have to lock up your money for longer than you’re supposed to live."


Here's what news media claims:

 " Trish Regan, (CBS news), reports on how some retirees are being tricked into buying long-term annuities that won't pay off until long after they're dead.”


The above statements are absolutely FALSE.




The Flexible Premium Deferred Fixed Annuity I sold my 78 year old mother in 1999 had an “Annuity Date” of 12 / 02 / 2014.  That’s right, 15 years in the future! She would have been 93 years old before the contract would “mature.”


Can you believe I did THAT to my own mother?


What attorneys, stock brokers, bankers and news media would lead you to believe is that my mother had no access to her money until that date and will more than likely be dead before the policy ever matures.


These are absolute twisted material misrepresentations.


Because an annuity contract, "is a CONTRACT," the contract has to state some date in the future for the owner to elect an annuity settlement OPTION to begin receiving payments by way of annuitizing the contract.


All that “happens” on the Annuity Date or Maturity Date is the client will receive a letter from the company advising them of their settlement options.


My mother did in fact pass away 4 years later on January 20th 2004. She enjoyed the higher monthly interest earnings she received every month from her annuity. The extra monthly interest income supplemented her Social Security while NOT diminishing her principal or risking her money in Stocks or Mutual Funds. She averaged 5.7% interest per year on her funds in her annuity and when she passed away the principal was paid DIRECTLY to the named beneficiaries within days of the company receiving the claim forms.


So what’s my point?


The “Annuity Date and/or “Maturity Date” printed on the Policy Data Page is meaningless for all intents and purposes.


It DOES NOT mean that is the date you have to wait to have access to your funds. Nor does it mean that is the date you have to wait to begin annuity payments. Most all contracts allow the Owner to change the “Annuity Date” and most companies will allow a client to annuitize the contract anytime after the first contract year.


Previous Topic | Next Topic

Easily create a Forum Website with Website Toolbox.

Gary D. Spicuzza,

The Trust Group
2435 U.S. Hwy. 19
Suite 125
Holiday, FL 34691

Office: 727-945-8599