New York Life Guaranteed Lifetime Income Annuity II is a Single Premium Immediate Annuity (SPIA) that provides a stream of guaranteed income payments for the annuitant’s life or joint lives (s).
Payment Options
Life Only
Provides maximum lifetime income for one or two people. Annuity payments cease upon the death of the annuitant (death of both annuitants for a Joint Life policy).
Life with Period Certain
Provides lifetime income for one or two people for a guaranteed payment period of 5 to 30 years that is chosen at the time of purchase.
If the annuitant(s) dies before the end of the guaranteed payment period, the payments continue to beneficiaries for the remainder of that time period.
For Joint Life policies, payments to beneficiaries continue only if both annuitants die during the guaranteed payment period.
Life with Cash Refund
Provides lifetime income for one or two people.
If the annuitant(s) dies before receiving payments that total the premium amount, the beneficiary receives a lump sum of the difference between the premium amount and total payments paid to the annuitant(s).
New York Life Insurance is also an inexpensive way to leave a death benefit to beneficiaries.
Use an immediate annuity calculator to compare your best income payout options.
Withdrawal Features
Payment Acceleration
After age 59½, policy owners can choose at any time to receive five monthly annuity payments in advance, along with the next scheduled payment, for a total of six months’ worth of payments in one lump sum.
Payments resume after six months at their previously scheduled amount.
- Maybe exercised twice during the life of the policy.
- Available only for nonqualified policies receiving monthly income payments.
Up to 100% Cash Withdrawal
After age 59½, policy owners may withdraw up to 100% of the discounted value of remaining guaranteed payments at any time within the guaranteed payment period.
Once this option is exercised, future income payments through the end of the guaranteed period will be reduced by the withdrawal percentage elected.
If the annuitant is alive at the end of the guaranteed payment period, full annuity payments will then resume for the life of the policy.
- Maybe exercised once during the life of the policy.
- Available only on nonqualified policies with a Life with Cash Refund or Life with Period Certain payment option.
30% Cash Withdrawal
After age 59½, policy owners can withdraw 30% of the discounted value of the remaining payments expected to be paid based on the annuitant’s life expectancy at the time of purchase.
This feature may be exercised on the 5th, 10th, or 15th anniversary of the first income payment or proof of a significant, nonmedical financial loss10 as specified in the policy.
Once this option is exercised, future income payments will be reduced by 30% for the life of the policy.
- Maybe exercised once during the life of these policies:
- Nonqualified policies with a Life Only payment option.
- Qualified policies with a Life Only, Life with Cash Refund, or Life with 5- to 30- year payment options.
- Roth IRA Life Only policies.
Taxation of Withdrawals (Fully Taxable)
Withdrawals made using the Payment Acceleration feature or a Cash Withdrawal feature will be reported to the Internal Revenue Service (IRS) as fully taxable. Also, penalty taxes may apply in certain circumstances due to exercising a withdrawal feature under an immediate annuity.
Optional Features
Reduction of Income
This feature, available only with Joint Life policies, provides larger payments while both annuitants are living, then reduces the income benefit amount paid to the surviving annuitant.
- Reduction of Income percentages (50% and 67%) must be chosen at the time of purchase.
- Available on qualified and non-qualified policies.
- For qualified policies with a spouse as the joint annuitant, the owner may elect a Reduction of Income that occurs either after the death of the primary annuitant or after the death of either the primary or secondary annuitant. For qualified policies with a non-spouse as the joint annuitant, the Reduction of Income may occur only after the death of the primary annuitant, and, if the secondary annuitant predeceases the primary annuitant, 100% of the annuity income payments will continue as long as the primary annuitant is still living.
- Not available with the Cash Refund payment option.
Annual Increase Option
New York Life allows most policy owners to increase income benefits by 1% to 5% annually.
- Must be elected at the time of purchase.
- The policy owner must be at least age 59½ at the time of the first payment.
- Payments for the same premium will initially be smaller than policies without this feature and will increase each year at the percentage chosen.
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.
