Brokerage in your Corner

We all know how competitive MassMutual’s permanent product portfolio is, with its industry-leading dividend scale and historical performance. In a previous article, we discussed the competitiveness of the company’s term product portfolio, both from a price and feature standpoint. And there is yet another product that deserves our attention and where MassMutual proves to offer one of the best in the industry.

Thanks to higher interest rates over the last couple of years, our Single Premium Immediate Annuity product, RetireEase, offers very competitive payout rates for those retirees who seek no-worry, guaranteed lifetime income. Recently, we sold a $100,000 RetireEase policy to an 83-year-old widow who needed to maximize income from some of the net proceeds of her recently sold home, since she only had Social Security and a very small pension from her late husband. Her SPIA lifetime benefit, including a minimum cash refund survivor benefit, was $866 per month, or about $10,400 per year. The alternative to her, if she wanted to assure herself of never running out of money (her mother lived to be 99!) would be to live on the interest alone. At best, that would give her about $5,000 per year, (fully taxable), and that interest rate would not be guaranteed beyond 5-7 years. 

In the right situation, an SPIA can be an ideal solution, and MassMutual’s RetireEase is one of the best out there!