Immediate Annuities for Military Servicemembers

Navy Mutual’s Single Premium Immediate Annuity is a non-qualified fixed annuity contract that will permit you to make a onetime premium deposit which will guarantee a stream of income that can be paid out over the annuitant’s lifetime or for a specified period of years. Navy Mutual allows you to choose from a variety of payment options as explained later.

Features of the Single Premium Immediate Annuity

15 Day Review

Single Premium Amounts

Single premium payments may range from a minimum of $10,000 per contract up to a maximum of $900,000 per owner. No additional premiums may be paid into an existing annuity. Any new premiums will be applied to a new annuity contract, subject to the minimum $10,000 requirement. Annuity payments will be calculated based on the amount of single premium deposit and the payment option chosen. Please contact Navy Mutual at 1-800-628-6011 for a payment quote.

Guaranteed Annuity Payment

Navy Mutual will provide a guaranteed annuity payment on all fixed period, life income, and joint & survivor immediate annuity contracts. The guaranteed annuity payment will be specified at the time you purchase the annuity.

Frequency of Payments

Individuals may choose to receive income monthly, quarterly, semiannually, or annually. Payments are made at the beginning of each period. A payment option which is made less frequently throughout the year will receive a lower annual income value than a payout option which is made more frequently. Payout modes may be changed by the owner in the future.

Expenses

Navy Mutual is a nonprofit association which charges no surrender fees, loads, or commissions! With the absence of these charges, Navy Mutual can provide very competitive annuity products.

Safety

You are guaranteed by Navy Mutual to receive at least your guaranteed annuity payment for the life of the annuity.

Annuity Payout Options

Fixed Period

This annuity allows an individual the option of having income paid out over a period of 1 to 30 years. Once the end of the elected fixed period is reached, the entire annuity value will have been paid out and all payments will cease. If the annuitant should die prior to the completion of the fixed period, a designated beneficiary will receive the remainder of the payments. The owner may request to make random lump sum withdrawals from the annuity contract as long as the annuity accumulation value does not drop below the contract’s required minimum value. Making withdrawals will reduce all future annuity payments.

Life Income With No Death Benefit

This option allows an individual to receive the highest monthly income over the course of the annuitant’s lifetime. Payments are guaranteed to continue for the life of the annuitant. Upon the annuitant’s death, payments will cease. No withdrawal options are available under this option. Life annuity options become irrevocable after the 15 day review period.

Life Income With A Fixed Period Certain

Payments are guaranteed to continue during the annuitant’s lifetime. In addition, this option contains a feature that ensures the continuation of payments to a the owner or beneficiary (as applicable) if the annuitant should die within a predetermined period of time, referred to as a period certain. A period certain of 5, 10, 15, or 20 years may be elected. Should the annuitant die during the period certain, payments will continue to a designated beneficiary for the remainder of the period certain. For example, if a 15 year period certain is elected and the annuitant dies in the 11th year, beneficiary will continue to receive the payments for 4 years (15 -11). If the annuitant’s death occurs after the period certain, no additional payments will be paid.

Joint and Survivor Income

Payments are made for the life of both annuitants. Upon the death of one annuitant, the surviving annuitant will continue to receive previously elected percentage of the annuity payment. The owner of the annuity can elect to have 100%, 66 2/3% or 50% of the payment amount paid to the surviving annuitant. Payments cease upon the death of the second annuitant. No withdrawal options are available under this option. The Joint and Survivor Income annuity option becomes irrevocable after the 15 day review period.

Tax-Deferred Exchanges

The surrender value of an existing annuity or permanent life insurance plan can be transferred into a Navy Mutual single premium annuity without incurring an immediate taxable event! This transfer is called a“1035 Exchange”. If an annuity is being exchanged for another annuity, the annuity must be payable to the same person or persons as the original contract, otherwise the transfer does not qualify for the tax-deferred exchange. Please be aware that retirement accounts such as a 401(k), IRA, etc. will not qualify for a 1035 Exchange to any of Navy Mutual’s annuity products. To insure that your transfer will qualify for a tax-deferred exchange, please contact your tax adviser.

Navy Mutual Eligibility for Annuities

Navy Mutual’s Single Premium Immediate Annuity (SPIA) may be purchased on the life of and owned by an eligible member, spouse, child, grandchild, or dependent. Members and spouses must be under age 85 while children and grandchildren must be between the ages of 6 months and age 24. Nonmembers (i.e., service member who does not currently maintain a policy with Navy Mutual) applying for a Navy Mutual SPIA must be under the age of 65 and either active duty, reserve or retired (subject to recall) from either the Navy, Marine Corps, Coast Guard, US Public Health Service,or NOAA. Navy Mutual membership is attained by taking out any Navy Mutual benefit plan for the service member, spouse, children, grandchildren or dependents. Once established, membership is not affected by a subsequent change in service status.

Single Premium Immediate Annuity

Some of the great features our Annuities offer are:

What is Navy Mutual's Single Premium Immediate Annuity?