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Companion Life Insurance Company

A Mutual of Omaha Company


Single Premium Immediate Annuity

policy highlights

Single Premium Immediate Annuity

An immediate annuity is designed to convert a lump sum of money into a predictable series of payments (an income stream) for the policyowner. Payouts must begin between one and 13 months of the purchase date.

Is Ultra-Income Right For You?

Ultra-Income is right for you if you are:

At Retirement Age

  • Currently utilizing income from your retirement


  • Need to replace income from your regular paycheck

  • Require funding for your current living expenses

Near Retirement Age

  • Want to fund early retirement (one or both spouses)

  • Require an income supplement

  • Fund a life insurance policy or other insurance products

  • Searching for an investment vehicle for non-qualified funds

Product Benefits

  • Safety – The principal and interest payment schedule is guaranteed by the financial strength and stability of Companion Life Insurance Company. You can rest assured you will receive the amount agreed upon on the dates agreed upon. Selecting certain options can guarantee an income you can’t outlive.

  • Flexibility – Multiple income options available to meet your specific needs.

  • Tax Advantage – For qualified funds, the transfer of funds is a non-taxable event. For non-qualified funds, only the interest portion of each payment is taxed.

  • Probate Avoidance – Proceeds go directly to your beneficiary, avoiding the publicity, delays, and expenses associated with probate.

  • Impaired-Risk/Substandard Underwriting Available – For individuals with health problems that may limit their life expectancy, impaired risk/substandard underwriting allows for larger payouts without increasing the premium.

YC1677 0210


Fund Sources

The following list is a sampling of fund sources. Funds may also come from other sources.

Qualified Funds

  • IRA Rollover from a:

    • Traditional IRA

    • 403(b) plan

    • 401(a) qualified retirement plan

    • Profit sharing/401(k) plan

Non-Qualified Funds

  • Existing annuities

  • Life insurance policy cash values

  • Personal assets

    • Sale of home

    • Settlement

    • Inheritance

Tax Considerations

Qualified Funds – If an annuity is purchased with pretax funds, all income from these funds would be taxable as the proceeds are received.

Non-Qualified Funds – If an annuity is purchased with after-tax funds, each benefit payment will be part principal and part interest. According to the Exclusion Ratio – a portion of each periodic benefit payment received is considered a return of principal, and therefore is not taxed. The remaining portion is considered interest earnings, and therefore is taxable as the proceeds are received.

Note: Federal income tax laws are complex and subject to change. The information on this sheet is based on current interpretations of the law. Neither Companion Life Insurance Company nor its representatives give legal or tax advice. Consult an attorney or tax advisor for answers to tax questions.

Premium taxes will be charged based on the premium paid and will be computed using current rates charged by the state in which the policyowner resides (not the annuitant). Premium taxes will be deducted from the single premium amount.

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