What Does The Maturity Date On An Annuity Mean? - YouTube

Hi there. I'm Stan The Annuity  Man, America's Annuity Agent,  

license in all 50 states that's including yours.  What does the maturity date on an annuity mean?  

Great question. Glad you are watching this  video because I'm going to dig in and tell you  

what that all means. But I'm not going  to do any of that until I hear music.  

So, I'm going to go over a lot today. Why  companies put maturity dates on policies?  

What that means? What your choices are? All of  that stuff. So that when you get your policy  

and you see this maturity date on the policy,  you'll understand exactly what that means. Hey,  

but before we start, I need you to do me a favor.  Hit the subscribe button, hit that little bell.  

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I do a ton of these. And you can leave a comment  as well. I would encourage you to leave a comment.  

You know, I'm going to read it, I'm going to  respond even if you're mean to me. Even if you're  

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truth and the brutal facts about annuities. So..  Hey, hit the subscribe button. Thanks. The purest  

definition of the maturity date on an annuity is  when you annuitize that contract and that covers  

all types of annuities. Hey, remember that all  annuity types have maturity dates. But let's just  

look at an example. If you have a single premium  immediate annuity right now and you're already  

getting an income stream, you've already hit the  maturity date. So, what happens when you reach  

that maturity date that you see on the policy?  Well, depending on the policy, you have choices  

that you can make at that time. I'll give you a  story that happened the other day. A person bought  

a 5-year multi-year guarantee annuity from you  which is a cd product obviously. Annuity version  

of a cd. So, it's a 5-year guarantee but on  the policy, it had a maturity date of like  

50 years from now. So, the guy calls me up and he  goes, "Wait a minute. I bought a five-year policy  

with the guarantee" absolutely. "So, why is it  say 50 years from now there's a maturity date?"  

What that means is if it gets to that date and  you have not contacted them which isn't going to  

happen because you're going to be dealing with  me Stan The Annuity Man. But let's just say you  

get to that date, there's going to be choices and  the possibility of you having to annuitize it at  

that point in time. Will that happen? Probably not  but that's what that maturity date means on your  

policy. So, the question is why do companies even  put these long maturity dates on these products?  

Well, first of all, that's the law. That's  the regulation. They have to. Remember this:  

Annuities were put on the planet for lifetime  income. So, that maturity date is in essence  

saying at that date, if we don't hear from you,  we're going to turn that into a lifetime income  

stream. I've come up with 2 very unique ways to  determine if you need an annuity. And if you do,  

what type works best contractually for you. The  first 2 questions that I've come up with, every  

single person that calls Stan The Annuity Man, I  encourage you to do that. Go to theannuityman.com  

and set an appointment to speak with me. But I ask  them 2 questions. The first question is, "What do  

you want the money to contractually do?" And the  second is, "When do you want those contractual  

guarantees to happen?" Let's take those 2  questions and I'll give you a couple examples."  

What do you want the money to contractually do?  I want income. Second question. When do you want  

those contractual guarantees to start? I want  income to start now. Well then, we've determined  

that you might need a single premium immediate  annuity. Let's do it again. What do I want the  

money to contractually do? Income. When do I  want those contractual guarantees to start?  

7 years from now. Okay, we've narrowed it down  to 2 product types. Deferred income annuities,  

it could be a QLAC as well and income riders,  okay? From just those 2 questions, I'll quote all  

carriers to find the highest contractual  guarantees and then we will discuss them.  

Let's do it again. What do you want the money to  contractually do? I want to protect the principal  

and get some interest. When do you want those  contractual guarantees to start? Now. Okay,  

great. That is a multi-year guarantee annuity.  That's the annuity industry's version of a cd.  

See how simple that is? So, let's do it again.  What do you want the money to contractually do  

and when do you want those contractual guarantees  to start. Now, the second thing I've come up with  

is an acronym called PILL. P stands for principal  protection. I stands for income for life.  

L stands for legacy. And the other L stands  for long-term care/confinement care. So,  

let's do it again. Principal protection, income  for life, legacy, long-term care/confinement care.  

If you do not need to contractually solve for  one or more of those items in the pill acronym,  

you do not need an annuity. There's no G for  growth. There's no M for market. There's no S for  

stocks. It's pill. Principal protection, income  for life, legacy, long-term care/confinement  

care. You can contractually solve for those 4  items using annuities. So, let's do it again.  

2 questions --What do you want the money  to contractually do and then use the pill,  

principal protection, income for life,  legacy long-term care/confinement care.  

That's it. That's the way to determine  if you need an annuity and what type.  

And even better than that, if you don't need an  annuity. Hey, I hope I answered all your questions  

about maturity date. By the way, Stan The  Annuity Man, America's Annuity Agent is mature,  

I'm old. I've got gray hair. I digress. Go to  my site, theannuityman.com .Get your quotes, get  

books for free. Schedule a call with me. Listen  to my podcast Fun With Annuities. But before you  

do any of that, hit the subscribe button and I'll  see you on the next Stan The Annuity Man video.