What is the TruStage Lifetime Income Plan and how does it work?
The TruStage Lifetime Income Plan is an immediate annuity. By paying a lump sum now, you can guarantee a steady stream of income for the rest of your life. The lump sum payment can come from a variety of sources, including a savings account, certificate of deposit, IRA, 401(k) plan or mutual fund account.
Are there any age or health restrictions?
You must be a credit union member between ages 21 and 90. There are no health restrictions. No medical exams are required.
How much money should I use to purchase this plan?
You can purchase the TruStage Lifetime Income Plan with $10,000 or more. It's recommended, however, that you use no more than half of your retirement assets (not including your home) for an annuity. This helps ensure you have savings available for emergencies or other expenditures.
In addition to the monthly payment I receive, can I withdraw additional money?
No. You should be aware that the money used to purchase your annuity is permanently locked into your contract and can only be returned to you in the form of monthly payments. You will, however, have 30 days to review your contract and show it to any advisors you may have. If you're not satisfied for any reason within 30 days of your purchase, you can receive a full refund.
What happens if I die prematurely?
The TruStage Lifetime Income Plan has guarantees to protect your purchase payment. Let's say you purchase the plan with $50,000 and you pass away after receiving only $13,000 in total monthly income payments. Your beneficiaries would then receive $37,000—the difference between what you paid in and what you collected.
Will my monthly payment ever change?
No. Your income is guaranteed to remain the same, every month, for as long as you live. It is not affected by market fluctuations or any other factors. This is income you can count on, no matter what.
Who is guaranteeing my lifetime income?
Your income is guaranteed by CMFG Life, a company with over 80 years of experience providing financial products to credit union members. Your credit union trusts CMFG Life to provide you with valuable coverage and help give you peace of mind.
CMFG Life is rated A (Excellent), the third-highest rating out of 16, by A.M. Best as of February 2012.