What Will We Be Covering in this Annuity Review?
In this review, we will cover the following information about the CUNA Mutual MEMBERS Single Premium Immediate Annuity:
- Product type
- Current rates
- Realistic long-term return expectations
- How it is best used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
Back in the early 1900s, life expectancy was approximately 41 years. But today, however, it is not uncommon at all for many people to live twice that long. This means that not only is it possible to spend a decade, two, or even three, in retirement but that it is also becoming more of the norm rather than the exception.
However, while a nice long retirement can be very appealing to most people, it can be difficult at best to live comfortably if you don’t have enough money coming in each month to pay your living expenses.
One way to help you ensure that you not only have an ongoing retirement income but one that could last for the remainder of your life is to purchase an annuity. These products, which are issued by insurance companies, will typically offer you a lifetime income option that guarantees you an incoming cash flow for as long as you need it – regardless of how long.
With that in mind, though, before you run out and sign on the dotted line for an annuity, it is extremely important to understand that not all annuities are exactly alike. In fact, far from it…especially as insurance companies continue to offer new annuities all the time.
In addition to that, these products will often come with an insane amount of “fine print”, so even though you may think that the annuity will offer you certain benefits, you may actually need to endure a plethora of fees, charges, and/or tradeoffs in order to get the benefits you had anticipated.
Therefore, because immediate annuities require that you contribute a large amount of money into the account right from the get-go, it is highly recommended that you know exactly what it is that you’re getting into, as well as what could happen if you decide that you want to get out of it.
That’s where the Annuity Gator comes in!
Annuity and Retirement Income Planning Information You Can Trust
If this is your first visit to our website, please allow us to personally welcome you to AnnuityGator.com. We are a team of experienced financial professionals who provide highly comprehensive, and non-biased, annuity reviews.
We have been focused on this for many years – much longer than most of the other websites on the Internet that promote annuities in exchange for getting your contact information. In addition, there are also a number of “copycat” sites – some of which you may have already run across.
Unfortunately, the bold claims that are made by these sites – such as high income, 7% – 8% returns, and no fees – may not necessarily be the case. So, before you get pulled in, you should first educate yourself on how annuities work, what they do, and the tradeoffs you may have to make in order to obtain all of the benefits.
If you’ve been approached by a financial or insurance advisor regarding the CUNA Mutual MEMBERS Single Premium Immediate Annuity, you may have been given at least some information. This review will provide you with the rest of the details you need for making a well-informed decision about whether or not this is the right annuity for you.
So, if you are ready to get started, let’s dive right in!
The CUNA Mutual MEMBERS Single Premium Immediate Annuity at a Glance
|Product Name||MEMBERS Single Premium Immediate Annuity|
|Type of Product||Single Premium Immediate Annuity|
|Phone Number||(800) 356-2644|
Opening Thoughts on the CUNA Mutual MEMBERS Single Premium Immediate Annuity
Founded more than 80 years ago by credit union leaders who were looking for an insurance and investment partner they could trust, CUNA Mutual offers a wide array of financial products to help its customer grow and protect wealth.
In fact, CUNA Mutual is self-described as “A financial services company serving financial institutions and their clients worldwide.”
As of year-end 2017, the company has over $20.5 billion in assets and had taken in roughly $3.5 billion in total revenue. Due in large part to its financial strength and stability, CUNA Mutual is rated highly by the insurance company rating agencies with an A from A.M. Best, an A2 from Moody’s Investors Service, and an A from S&P Global.
With all of the stock market’s volatility and unpredictability, the demand for fixed annuities has grown quite a bit, particularly as a way for retirees (and those who are preparing for retirement in the near future) to keep assets safe, and to ensure that they have a stable and reliable income going forward.
Today, with so many companies doing away with their defined benefit pension plans, it has become the responsibility of individuals to make sure that they convert their savings over into an income stream – and that the income continues to last throughout the remainder of their lifetime.
An immediate annuity like the MEMBERS Single Premium Immediate Annuity from CUNA Mutual could fit the bill for solving these issues. However, it is also important to remember that, just like any other financial product, not all annuities are the same. So, it is highly recommended that you take a good, close look at this – or any other annuity that you are considering – before you commit to it.
Before we get into the gritty details, here are some necessary legal disclosures…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. CUNA Mutual has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
For additional information on how to compare fixed annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How CUNA Mutual Describes the MEMBERS Single Premium Immediate Annuity
According to CUNA Mutual Insurance Company’s product brochure, the MEMBERS Single Premium Immediate Annuity offers you the opportunity to decide on the length of time you want to receive your income payments – either for a set number of years or even for the remainder of your life.
In addition, you can also decide on the strength of your guarantee, meaning that you can receive a fixed amount of income that never changes, or alternatively, you can opt to receive an income that increases over time in order to help keep pace with rising inflation. You can also choose whether you want to just receive income yourself or to have an income that pays out to you, and then to another individual, such as a spouse or partner.
The MEMBERS Single Premium Immediate Annuity is underwritten by CMFG Life Insurance Company, a leading provider of financial services to financial institutions and their valued customers around the world.
For additional information regarding this annuity, you can check out the CUNA Mutual MEMBERS Single Premium Immediate Annuity brochure HERE.
How an Insurance or Financial Advisor Might Present this Annuity to a Client
If you’ve been presented the CUNA Mutual MEMBERS Single Premium Immediate Annuity by your current insurance or financial advisor, there are likely a few key items that he or she touched on in order to entice you to purchase it.
First, this product can offer you a guarantee when it comes to income in retirement. This includes providing you with an income stream that will last throughout the remainder of your lifetime, as well as the life of another individual if you so choose. Plus, you have the opportunity to increase the amount of your income over time.
There are some other areas that you should consider, too, before you commit a large chunk of money to this annuity. For instance, once this annuity has been converted to income, the decision is non-reversible.
This means that you will not be able to dig into your lump sum of cash – even if you have a financial emergency. Given that, it is imperative to keep in mind that the purchase of an annuity is a long term decision.
What About Any Fees on this Annuity?
As with other annuities, there are some tax- and fee-related areas to be aware of with the MEMBERS Single Premium Immediate Annuity from CUNA Mutual. For instance, in this case, if you purchase an immediate annuity with after-tax dollars, then each of your annuity income payments that are made will consist of both a taxable income portion and a return of premium portion (which is non-taxable).
However, if you have used money from a traditional IRA or employer-sponsored retirement plan (such as a 401k) where the money you contributed to the annuity has not yet been taxed, then you will owe taxes on 100% of the income distributions you receive. This, in turn, can make a big difference in the amount of income you are actually able to spend.
The Annuity Gator’s End Take on the CUNA Mutual MEMBERS Single Premium Immediate Annuity
Although an immediate annuity might not be right for everyone, the MEMBERS Single Premium Immediate Annuity from CUNA Mutual could be a good option for you if you are seeking the following benefits:
- A reliable income stream right away (or one that starts within 12 months after purchasing the annuity)
- A place to move funds from an IRA, 401(k), or another type of retirement plan so that you can convert it from a lump sum of savings into income
- A solution to stop the worry about running out of income in retirement
Where it works the worst:
However, even though this annuity offers some nice benefits, it may not be for you if you:
- Feel that you may need some (or all) of your funds for other needs
- Do not plan to use the annuity for income
If you’ve been considering the purchase of an immediate annuity, but you are still unsure about moving forward because you just don’t know if this is the right financial vehicle for you, then it is imperative that you further your understanding of this product, and that you get all of your questions answered. We can assist you with any of the questions or concerns that you may have. Please feel free to reach out to us directly via our secure online contact form here.
With regard to this particular annuity, the good news is that you (as well as another individual, if applicable) can be assured that you will have income for as long as you need it, based upon the income payout option that you choose.
Even so, though, the only way to really know whether or not this annuity will work well for you and your situation is to have it tested. We can perform this testing for you, using our annuity calculator, and we will provide you the results at no charge or obligation. If you are interested in this information, just simply let us know here through our secure online contact form.
Have Any Additional Questions? Notice Any Mistakes in this Annuity Review?
We know that this annuity review may have been somewhat lengthy. So, given that, we truly thank you for sticking with us through thus far. However, we would much prefer to give you “too much” information in these reviews that not to give you enough. Therefore, if you felt that this annuity review was beneficial, please feel free to share it and forward it on to anybody else that you think may also be helped by it.
We also understand just how fast financial and insurance product information can – and does – change. So, if you did happen to notice any information in this annuity review that was out of date or needs updating, please let us know that, too, so that we can get it revised as soon as possible.
Are there any other annuities that you would like to also see reviewed?
If you have been shopping for annuities, it is possible that you’ve been presented with several different options. So, if you’ve come across any other annuities that are not included in our review database, please let us know that, too so that we can do our research and analysis and add it to our site.
The Annuity Gator