Need Advise from a VA Expert on Suitability.

[iceco1d]

contract value 95,916
PWV 109,460
death benefit 107,712 highest periodic value rider
annual income now 6,567 or 547.25 monthly i
10 yr Income guarantee 186,807 mother would be age 88
20 yr 373,615 99

So from those numbers, it looks like the HD6 rider is a benefit to her for the time being, as her contract value has not performed at 6% (although, without the annuity M&E and rider costs, the contract value would be quite a bit higher).

Keep in mind, the "doubling" and "quadrupling" of the income base is a bonus to the contract. It's not something you HAVE to wait for. You can start lifetime income whenever you like.

I had prudential run an Annuitization quote on 95,916 an a Life Income with 15 year certain would pay 607.96 per month .She or her heirs are guarenteed 109,432 in this scenario.If she lives to age 100 she gets 145,910

First if my mother starts taking withdrawal now it does start decreasing her account value right? If she starts taking PWV withdrawals of 547.25 now and lives to 100 she collects 131,340. Prudential customer service said if mother dies before PWV is paid out heirs receive death benefit less payments.Is this how it works?

This is precisely how it works, which is the benefit over annuitization.

Here is something you could consider (and note: this is purely ficticious, and for example only, this is not investment advice nor should anything I said be construed that way): She could start lifetime income payments from this contract, and take the payments and put them in something that you/she actually approves of.

They will make those payments until she passes, and if there is any actual money left over, you'll get that paid out as a DB, in addition to the payments she took and put into whatever financial product you prefer (fixed annuity, CDs, stocks, whatever).

What does cut off date age 85 and annuity date 11/1/2016 on policy schedule page mean.I thought I read somewhere that she has to annuitize at age 85 anyway.

This could vary by state I would imagine, but in my state the HD6 contract is not required to annuitize at 85. That's probably your last chance to annuitize (85).

Twenty friggin characters.

 

[yogooglethis]

contract value 95,916
PWV 109,460
death benefit 107,712 highest periodic value rider
annual income now 6,567 or 547.25 monthly i
10 yr Income guarantee 186,807 mother would be age 88
20 yr 373,615 99

So from those numbers, it looks like the HD6 rider is a benefit to her for the time being, as her contract value has not performed at 6% (although, without the annuity M&E and rider costs, the contract value would be quite a bit higher).

Keep in mind, the "doubling" and "quadrupling" of the income base is a bonus to the contract. It's not something you HAVE to wait for. You can start lifetime income whenever you like.

I had prudential run an Annuitization quote on 95,916 an a Life Income with 15 year certain would pay 607.96 per month .She or her heirs are guarenteed 109,432 in this scenario.If she lives to age 100 she gets 145,910

First if my mother starts taking withdrawal now it does start decreasing her account value right? If she starts taking PWV withdrawals of 547.25 now and lives to 100 she collects 131,340. Prudential customer service said if mother dies before PWV is paid out heirs receive death benefit less payments.Is this how it works?

This is precisely how it works, which is the benefit over annuitization.

Here is something you could consider (and note: this is purely ficticious, and for example only, this is not investment advice nor should anything I said be construed that way): She could start lifetime income payments from this contract, and take the payments and put them in something that you/she actually approves of.

They will make those payments until she passes, and if there is any actual money left over, you'll get that paid out as a DB, in addition to the payments she took and put into whatever financial product you prefer (fixed annuity, CDs, stocks, whatever).

What does cut off date age 85 and annuity date 11/1/2016 on policy schedule page mean.I thought I read somewhere that she has to annuitize at age 85 anyway.

This could vary by state I would imagine, but in my state the HD6 contract is not required to annuitize at 85. That's probably your last chance to annuitize (85).



OK when you start taking withdrawals you are committed to continue payment stream but you can still have access to balance of the account value if you want to walk away whereas once annuitized you don't? The PWV lock in stays intact if you take withdrawals but instead of a daily lock in its on an annual basis?

Strictly based on the income as of today comparing the guarantee of pay out if she annuitizes ( 15 yr certain) vs taking withdrawal payout more income is guaranteed by annuitizing if I am looking at this correctly.If this is what we decide what is the downside of 1035 exchanging the account value to a SPIA that pays a higher monthly income?

Thanks for clarifying this product and I understand you are not giving financial .

 

[iceco1d]

OK when you start taking withdrawals you are committed to continue payment stream

No, you are not committed to continue the payment stream. You can stop taking payments whenever you want, and restart them later. You can also take payments of less than the maximum if you want. It's completely flexible and up to you (your mother) to do what you want.

but you can still have access to balance of the account value if you want to walk away whereas once annuitized you don't?

This part is correct. You can walk away with whatever the account balance is whenever you want, since it's withdrawals, not annuitization.

The PWV lock in stays intact if you take withdrawals but instead of a daily lock in its on an annual basis?

Correct. And there is no more 6% per year increase in the income base. In order to get a "step up" your account value (contract value) actually has to be higher than the current PWV on an anniversary.

Strictly based on the income as of today comparing the guarantee of pay out if she annuitizes ( 15 yr certain) vs taking withdrawal payout more income is guaranteed by annuitizing if I am looking at this correctly.

That is true, but you lose access to the principle if you annuitize. If you just take the lifetime withdrawals allowed by HD6, you still have access to the principle if you ever want it, plus if there is principle left it would be paid to you (or whoever the beneficiary is) when she passes away, whereas with annuitization there would be nothing (except if you did 15 year period certain, and then you'd get a few years of payments).

If this is what we decide what is the downside of 1035 exchanging the account value to a SPIA that pays a higher monthly income?

You lose access to the principle. There will be little or no death benefit for her heirs.

Thanks for clarifying this product and I understand you are not giving financial .

No problem. Happy to help.

 

[Baconfat]

And some pellet say I'm anti variable annuity

Lol. I stuck my foot in my mouth on that one.

 

[Norwayguy]

Lol. I stuck my foot in my mouth on that one.

You know Baconfat you make a good addition to the forum. You might also note my phones wonderful autocorrect thinks people should be pellets

 

[Baconfat]

You know Baconfat you make a good addition to the forum. You might also note my phones wonderful autocorrect thinks people should be pellets

Thanks. If you notice all of my posts are edited. I have the dumbest smart phone ever made. Glad I'm not a pellet though!