Ageup options 101

What are my choices?

Annuitant (who AgeUp is for)

The first decision you'll need to make is choosing the annuitant, or the person you're buying AgeUp to help. It can't be just anyone—the annuitant has to be a parent, grandparent, aunt, uncle, mother-in-law, or father-in-law. Additionally, your parent or other loved one has to be between 50 and 75 years old at the time of purchase.

Payout age

The second choice you'll need to make is the payout age (or "annuity payout start age" in legalese). That's your parent or loved one's age when you'll begin receiving monthly AgeUp payouts. The youngest age you can choose is 91, and the oldest is 100. The higher the payout age you select, the more you'll receive each month in payouts.

Monthly payment

Your purchase payment, or premium, is the amount you'll pay each month. The payment amount is up to you, from as low as $25 per month to as high as $250. The higher the payment you choose, the larger the monthly payouts you'll receive if your parent or loved one reaches the payout age.

The payments begin when you purchase AgeUp and continue until 13 months before your parent/loved one turns the age you chose to begin receiving payouts. For example, let's say you buy AgeUp to help your mother, with a payment of $50/month and a payout age of 91. You'd pay $50 per month from the day you buy AgeUp until one month before her 90th birthday. When she turns 91, you'd begin receiving a monthly payout for the rest of her life to help however she needs.

Death before payout age option

When you buy AgeUp, you'll need to select either “yes” or “no” on the "death before payout age option." In a nutshell, this determines what will happen if either you or your parent/loved one dies before your parent or loved one reaches the payout age.

If you choose yes, you'll get your money back if you or your parent/loved one dies before reaching the payout age, but your payouts will be smaller if you and your parent/loved one are both alive at the payout age. If you choose no, there's no refund in case of early death, but your payouts will be higher if you're both alive at the payout age.

For example...

Let's say you buy AgeUp for your father with a payout age of 91, and you select "yes" on the death before payout age option. If he passes away at age 85, you'd stop making payments, the contract would terminate, and you'd get a check refunding 100% of the money you'd paid until that point.

If you select "no" and he passes away at 85, you'd still stop making payments and the contract terminates, but wouldn't get your money back. However, if he lives to 91, your monthly payouts would be higher than if you'd chosen "yes."

Keep in mind that the death before payout age option also matters if you die before your parent or loved one reaches the payout age. In the example above, if you choose "yes" and you die before your father turns 91, the contract would terminate and your beneficiary or estate would get back all of the money you'd paid until that point. If you choose "no," the contract terminates and there's no refund. Regardless of which option you select, if you and your father are both alive when he reaches the payout age, the payouts will continue for the rest of his life, even if you pass away before he does.

Beneficiary (optional)

By design, AgeUp annuity payouts come directly to you. But you can also name a beneficiary - that's the person who will continue receiving the annuity payouts if you die after your parent/loved one has reached the annuity payout start age. The beneficiary should ideally be someone you trust to use the money for your parent or loved one's benefit.

Naming a beneficiary is also important if you selected "yes" on the “death before payout age” option. If you die before your parent/loved one has reached the annuity payout start age, the beneficiary is the person who will receive the return of your purchase payments.

Naming a beneficiary is optional. If you don't, all payments will go to your estate if you die before your parent or loved one. You can also name a beneficiary months or years from now. And, you can change the beneficiary if you change your mind. You may even choose to name your parent/loved one as the beneficiary if you want the annuity payouts to go directly to him/her if you die prematurely.

Before you name anyone, we recommend talking to him or her and his or her tax/financial advisor to make sure it's the right choice.

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