Fidelity and Guaranty Immediate Income Annuity provides guaranteed payments for a lifetime or fixed period, beginning right away.
FG Immediate-Income helps you:
- Meet expenses in retirement with guaranteed payments and inflation protection
- Have the security of knowing you won’t outlive your assets
- Provide a financial legacy, with the option of providing death benefits and continuing payments after your lifetime
Is FG Immediate-Income a good option for you?
FG Immediate-Income is a single premium immediate annuity that provides you with income on a schedule that suits you. It provides retirement income with these important features:
- Guaranteed payments that continue for your lifetime, the lifetime of another (for example, your spouse), or a fixed period, depending on the payout option you choose.
- Accelerated benefits if you become critically ill.
- A choice of monthly, quarterly, semiannual, or annual payments.
- The option to add inflation protection.
- Payout options that provide lump-sum death benefits for peace of mind.
Key Benefits
F&G’s Immediate-Income is purchased with a single payment and pays income right away. FG Immediate-Income is straightforward. You have three choices to make:
- The premium you would like to pay
- Whether to add an annual cost of living adjustment, up to 10%
- The payout option you would like
There are six payout options for you to choose from:
INCOME FOR A FIXED PERIOD
You will receive guaranteed income for the fixed period of time you have chosen, and the fixed period must be seven years or longer. Should you die during this fixed period, your spouse or beneficiary will receive the payments till the end of the fixed period OR may elect to take a lump-sum death benefit. The lump-sum death benefit consists of the net present value of the remaining payments.
LIFE INCOME WITH A FIXED PERIOD
You will receive a guaranteed income for your life. You will choose a fixed period, which must be seven years or longer. If you die during the fixed period, your beneficiary will receive the remaining guaranteed income payments.
LIFE INCOME
You will receive guaranteed income for as long as you live. This should not be chosen if you want someone to receive payments after your death.
JOINT AND CONTINGENT LIFE INCOME
You will receive guaranteed income for life, and if you die before your contingent annuitant, payments continue for your contingent annuitant’s lifetime at the rate you choose in your application.
JOINT AND SURVIVOR LIFE INCOME WITH A FIXED PERIOD
Guaranteed income is paid while you and your joint annuitant are alive, and after the death of either of you, payments continue for the other’s lifetime at the rate you choose in your application. If both you and your joint annuitant die during the fixed period, the payments continue to your beneficiary until the end of the fixed period. The fixed period you choose must be seven years or longer.
JOINT AND SURVIVOR LIFE INCOME
Guaranteed income is paid while you and your joint annuitant are both alive. After your death or the death of your joint annuitant, payments continue for the other’s lifetime at the rate you choose in your application.
Adding inflation protection
FG Immediate-Income has the option of a built-in cost of living adjustment of up to 10% per year, at the percentage you choose. If you select this option, you’ll receive a lower initial payment amount that will increase by the cost of living adjustment each year.
PEACE OF MIND
Withdrawals for critical illness
If you are diagnosed with a critical illness, you have the option of taking a lump sum payment instead of the remaining guaranteed payments. Critical illness is a defined condition, and this benefit may vary from state to state.
- If you have chosen income for a fixed period, the lump sum payment will be the net present value of the remaining payments in the fixed period.
- If you have chosen a life income with a fixed period, the lump sum payment will be the net present value of the payments in the fixed period.
- If the remaining fixed period is less than a year, you will receive the present value of one full year of payments.
- If you have chosen life income, joint and contingent life income, or joint and survivor life income, the lump sum payment will be the net present value of one year of payments.
Death benefits
A life income payout option with a single annuitant does not provide a death benefit, as payments end on the death of the annuitant. The other payout options provide continuing lifetime income to your joint or contingent annuitant, or income for the remaining fixed period, to your beneficiary. This income continues without delays or the need for probate. Upon your death, some payout options allow the income to be taken as a lump sum death benefit.
TAX INFORMATION
Any growth inside the annuity is tax-deferred. This means you don’t pay taxes on the interest as it’s earned, only in the year you withdraw it. Income payments are treated partially as a withdrawal of earnings (taxable) and partially as a return of your premium (nontaxable).
If a beneficiary elects to take a lump-sum benefit at the death of the annuitant, the interest portion of that payment would be subject to income tax.
If you purchase the annuity with pre-tax dollars (qualified funds), please keep in mind that buying an annuity in an IRA or other tax-qualified retirement account offers no additional tax benefit since the retirement account is already tax-deferred.
All payments are taxable.
Pension-Alternative
If you’re seeking a pension-like income in the future, but want more flexibility, check out an income rider. Annuities with an income rider provide guaranteed income for life with a death benefit for beneficiaries along with much more flexibility, access, growth potential, and control.
