Mom's Annunity...HELP !

[Todd Preston]

Hi Friends,

My mother is now 83 yrs old. She's retired (about 16yr) with AT&T as a phone operator for 25 yrs. Part of her retirement plan was an annuity with survivor ship (mom and dad).

Dad passed away 15yrs ago. However, Mom never told the annuity company that he passed. I spoke with the company that manages the annuity and they said there are no adjustments that need to be made ? ? ?

It would seem to me, that a premium should be due back to my Mom....Is she due some Money?

Anyone know the answer?

 

[Justin Bilyj]

If anyone knows how to address your problem I would talk to DHK or Ray

 

[scagnt83]

That is not how the Survivorship Option works. It is not a Death Benefit on both lives.

It is a continuance of the Annuity Payment after the Owner/Primary Annuitant passes. (it can also be a lump sum payment of some %, or payments for a set number of years, however being a work based Annuity I would guess it is a true "Joint Life" payout.)

The way it works is that it continues the Annuity Payments for BOTH LIVES.
So had your Mom passed, even though she was the Owner of the Annuity/Primary Annuitant, the Payments would have continued uninterrupted for your Dad.

But since your Father was not the Owner/Primary Annuitant, then nothing changes since your Mom is still living.

In otherwords, the Survivorship option was to ensure an Income had your Father survived your mother.

She is still getting the payments correct? If so then everything is right.

 

[Todd Preston]

...

But since your Father was not the Owner/Primary Annuitant, then nothing changes since your Mom is still living.

In otherwords, the Survivorship option was to ensure an Income had your Father survived your mother.

She is still getting the payments correct? If so then everything is right.

Thanks for answering.

So you are saying that my mother PAID NO PREMIUM to have a "survivor-ship" option ?

I did not realize that survivor-ship option was free?
Is survivor-ship option FREE ?

.

 

[smokin goose]

If anyone knows how to address your problem I would talk to DHK or Ray

Or scagnt83 .................... :-)

 

[Tahoe Ray]

scagnt83's reply looks spot on to me...probably nothing to do here.

You might want to ask the company what happens when mom passes...probably nothing since it likely a true "joint life only" payout but not knowing exactly what this annuity is, you'll want to verify that any allowable beneficiary designations are up to date.

 

[Norwayguy]

That is not how the Survivorship Option works. It is not a Death Benefit on both lives.

It is a continuance of the Annuity Payment after the Owner/Primary Annuitant passes. (it can also be a lump sum payment of some %, or payments for a set number of years, however being a work based Annuity I would guess it is a true "Joint Life" payout.)

The way it works is that it continues the Annuity Payments for BOTH LIVES.
So had your Mom passed, even though she was the Owner of the Annuity/Primary Annuitant, the Payments would have continued uninterrupted for your Dad.

But since your Father was not the Owner/Primary Annuitant, then nothing changes since your Mom is still living.

In otherwords, the Survivorship option was to ensure an Income had your Father survived your mother.

She is still getting the payments correct? If so then everything is right.

The above is right on the money. Your mother took a reduced annuity payout for the protection of the annuity continueing payments to your father in the event she passed on first.

 

[Tahoe Ray]

So you are saying that my mother PAID NO PREMIUM to have a "survivor-ship" option ?

I did not realize that survivor-ship option was free?

Is survivor-ship option FREE ?

It isn't "free"...she likely took a reduced payout to include him but just because he predeceases her doesn't mean that she is due any money back.

 

[VolAgent]

This is one of the reasons the pension max concept was invented, well that and sell more life insurance.

Joint and survivor really sucks when the survivor doesn't survive.

 

[scagnt83]

Thanks for answering.

So you are saying that my mother PAID NO PREMIUM to have a "survivor-ship" option ?

I did not realize that survivor-ship option was free?
Is survivor-ship option FREE ?

.

There is no fee or premium to be paid for survivorship options.
But, there is a difference in the Payout amount when you choose survivorship.

So your mom chose to have a slightly lower annual payout, so that she could ensure that your dad would be able to continue the income payments if she were to die first.

----------

This is one of the reasons the pension max concept was invented, well that and sell more life insurance.

Joint and survivor really sucks when the survivor doesn't survive.

Pension max is great if they are insurable.... even then a rateup can kill the effectiveness of it.