What will we cover in this review of the United Heritage Single Premium Immediate Annuity (SPIA)?
In this annuity review, we will be going over some of the main highlights of this product, including the:
- Type of Annuity
- Current Rates
- Realistic long term return expectations
- How the annuity 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 somewhere in the neighborhood of 41 years. 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’s 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, issued by insurance companies, will typically offer a lifetime income option that guarantees you an incoming cash flow for as long as your need it.
But, before you run out and sign on the dotted line for any annuity, it is important to understand that not all annuities are alike. In addition to that, these products will often come with an insane amount of “fine print”, so while you may think that the product will offer you certain benefits, you may actually need to endure certain 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 extremely important 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!
Retirement Income Planning Information You Can Trust
If this is your first visit to our website, please allow us to welcome you here to AnnuityGator.com. We are a team of experienced financial and annuity pros who are highly focused on offering the most comprehensive, and unbiased, reviews of annuities on the planet.
We have been doing these annuity reviews for many years now – much longer than our competitors – and so we have become a well-known source of annuity information on the Internet. We also have one of the largest annuity review databases around – and it is completely free for you to access and learn more about hundreds of different annuities.
With that in mind, if you’ve been looking for more information about annuities online, then it is a good possibility that you have noticed there’s a lot of conflicting information out there about these products. This, however, isn’t really a surprise, because there is also a great deal of confusion about how they work, and which type may be best for certain circumstances.
You may also have attended an annuity seminar or workshop recently where, in return for a free dinner or lunch, you were provided with details about the United Heritage SPIA (single premium immediate annuity), or some other similar financial product.
Attending that seminar may even be the catalyst that has ultimately led you right here to our website. But even though there is literally a plethora of websites that market their annuities to consumers, there are a fair number of these sites that will also attempt to “lure” you in by making very enticing claims like:
- High income payments
- Lowest annuity fees
- Guaranteed lifetime income
- 7 – 8% Rate of Return
Does any of this look familiar?
While these claims can be inviting, the truth is that it is absolutely essential that you first make sure that they are actually true. This is particularly the case if you are seriously thinking about moving a large sum of your retirement savings into one of them.
In any case, whatever the reason is that you landed here on our AnnuityGator.com website, you are definitely in the right place if you want to find out more about this – or any – annuity. That’s because we provide all of the details and resources, including not just the good, but also the bad and the ugly.
This is really the only way that you will be able to make a truly well-informed buying decision (or alternatively, to make a decision to pass on this particular annuity and move on to something else that may be more suitable for your specific financial goals).
This annuity review is provided here for you in order to help you ensure that you’re moving in the right direction with this (and/or other) annuity and to guide you in what to look for in terms of the pros and the cons.
So, if you are ready to get started, let’s get started!
The United Heritage Single Premium Immediate Annuity (SPIA) at a Glance
|Product Name||United Heritage SPIA|
|Issuer||United Heritage Life Insurance Company|
|Type of Product||Single Premium Immediate Annuity (SPIA)|
|A.M. Best Rating||B++ (Good)|
|Phone Number||(208) 493-6100|
Opening Thoughts on the United Heritage SPIA
United Heritage offers a wide range of financial products, including life insurance, annuities, and group life and disability income insurance. The company offers its products in 49 states, as well as the District of Columbia.
This company actually traces its roots back to the year 1896, when the Farmers Fire Relief Association of Sublimity began operations. Throughout the years, the company grew and expanded, and also increased its product lines to include property and casualty coverage.
Today, United Heritage Mutual Holding Company owns an intermediary holding company, United Heritage Financial Group (UHFG), which in turn, owns the stock of three separate companies, including:
- United Heritage Life Insurance Company
- United Heritage Property and Casualty Company
- Sublimity Insurance Company
The company is considered to be strong and stable financially, and it has a good reputation for paying out its policy holder’s claims. For the full year 2019, United Heritage Life Insurance Company took in nearly $102 million in insurance and annuity premium for a net income in excess of $5 million.
At year-end, United Heritage Life Insurance held nearly $627 million in assets and nearly $71 million in capital and surplus. With more than 58% of United Heritage’s overall business in life insurance, the company held more than $22 billion in overall insurance value in force.
With so many employers getting rid of their defined benefit pension plans, it has really 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.
A single premium annuity like the United Heritage SPIA 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 legal disclosures…
This is an independent product review, not a recommendation to buy or sell an annuity. United Heritage Life Insurance Company has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance product, it is important that you do your own due diligence and that you consult a properly licensed professional if you should have any specific questions that relate to your individual circumstances. All names, marks, and materials that were used for this review are the property of their respective owners.
For more information on how to compare annuities in order to determine which one may be right for you, click here to obtain our free annuity report.
How United Heritage Life Insurance Company Describes the United Heritage SPIA Annuity
On its website, United Heritage describes the SPIA annuity as a contract between you and the insurer. By paying a single sum of money to United Heritage, you are guaranteed to receive a series of payments either over a specified period of time, or for the rest of your lifetime – regardless of how long that may be.
With single premium immediate annuities, the income stream will typically begin right away, or within the first year of purchasing the contract. The amount of each income payment is determined on a variety of different factors, including the payout period you choose, your age, and the amount of money you deposit into the annuity.
Contributions that go into the United Heritage single premium immediate annuity could come from your personal savings and investments, or via a rollover from an IRA (Individual Retirement Account) or an employer-sponsored retirement plan like a 401(k).
How an Insurance or Investment Professional Might Pitch this SPIA Annuity to a Client
If you’ve been presented the United Heritage SPIA 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.
But even though that may sound enticing, before you commit a large chunk of money to this annuity, there are a few factors to consider. 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 Taxes and/or Fees?
As with other annuities, there are some tax- and fee-related areas to be aware of with the United Heritage SPIA. 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.
Also, if you make withdrawals before you have turned age 59 ½, you may also incur yet another penalty. This one is a 10% “early withdrawal” penalty from the IRS. So, depending on when you actually begin your income stream, you may not net out nearly as much as you had hoped to in terms of actual spendable income.
The Annuity Gator’s End Take on the SPIA Annuity from United Heritage Life Insurance Company
Although an immediate annuity might not be right for everyone, the United Heritage SPIA annuity 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 other type of retirement plan so that you can convert it from a lump sum of savings into income
- A solution to the worry about running out of income in retirement
Where this particular annuity may not be suitable:
However, even though this annuity offers some nice benefits, this particular annuity may not be for you if you:
- Feel that you may need some (or all) of your funds for other needs such as an emergency in the future
- Do not plan to use the annuity for income
If you’ve been considering the purchase of a single premium 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 the SPIA annuity from United Heritage Life Insurance Company, 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 than not to give you enough. Therefore, if you felt that this annuity review was beneficial, please feel free to share it and forward it 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
P.S. If you would like to read more of our United Heritage Life Insurance Company annuity reviews here are some links to check out.
- Independent Review of the United Heritage Annuity
- Independent Review of the United Heritage Secure Value MYGA Annuity
- Independent Review of the United Heritage Eagle 8 Annuity