Single Premium Deferred Annuity (SPDA)

As its name suggests, SPDAs are purchased with a single premium payment. Your annuity will grow with guaranteed interest until you choose to begin making withdrawals. Your interest rate is established at the time of issue. Our SPDAs offer a range of initial interest rate guarantees including 3, 5, 7 and 9 years. After the initial rate guarantee period, your rate may be adjusted each year but may never fall below the guaranteed minimum interest rate at the time of issue. The potential benefits of an SPDA are:

  • Guaranteed Safety of Your Principal and Interest. Your annuity is guaranteed by LBL, a legal reserve life insurance company.
  • Income Tax Deferral. Tax deferral means postponing taxes on interest earnings until a future point in time. In the meantime, you earn interest on the money you are not paying in taxes. You can accumulate more money, which ultimately will provide you with a greater income.
  • Simplicity. There is no withholding tax or income tax due while your annuity is accumulating. Only when you begin making withdrawals will you have taxable income reported. You determine that date.
  • Flexible Payment Options. At the time you select to make withdrawals from your annuity, you may have a number of options available. You may be able to choose a lump sum or a series of income payments.
  • Avoid Probate. If you die prematurely, your annuity may be paid directly to your named beneficiary without the delay and expense of probate.

Be sure to carefully read and understand your policy, ask questions of your agent and consult your tax advisor for information about possible tax consequences. Annuities are not insured by the FDIC nor guaranteed by any federal government agency.


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