Re: Annuities...are they a crap shoot?

On Apr 8, 12:50 pm, "HW \"Skip\" Weldon"
<skip5700removet...@[EMAIL PROTECTED]
> wrote:

> >However, one can have an annuity, and withdraw income
> >from it, without "annuitizing" the contract (I've always hated the
> >counterintuitiveness of that). In that instance (which has been the
> >far more likely case thus far) the beneficiaries receive one of two
> >figures: the greater of the contracts actual cash value OR the GMIB
> >base.
>
> Assume the same answer applies if the owner/annuitant never started
> any kind of withdrawals from the non-qualified annuity.  Yes?

Yes. It is more commonly the case that withdrawals are never taken or
only withdrawn from the contract value without annuitizing.

> Are the beneficiaries limited to a lump-sum taxable payout or can they
> elect a lifetime payout over their life expectancy (paying taxes only
> on the amount received each year)?

The heirs can receive a lump sum payout of the originally invested
principal minus and distributions or a lifetime payout based on the
their life expectancy. Additional (foolish) riders are included to
enhance the death benefit, provide an additional lump sum to cover
taxes, etc.

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