Single Premium Products:

Several companies are now marketing single premium deferred annuities (SPDA).  These annuities can be funded on the educator side from a 403b, a 457, or a Roth IRA.  For the general public, funds can come from a 401k, an IRA, or non-qualified money such as CD funds.  Most of these require a minimum $10,000 initial contribution.  Many of these products carry a first year premium bonus and a 10% free withdrawal each year.  They also have some nice options if the annuitant retires after the 5th year of the policy. 

Equity Indexed Universal Life:

This concept offers a cash growth opportunity because, beyond life insurance, it features cash accumulations that you do not have to die to enjoy.  If you live to retirement age, cash accumulations can be withdrawn each year using the loan feature.  These funds, therefore, can supplement your retirement checks and the loans do not have to be paid back.  The big advantage is that these loan funds are not taxable because you paid the premiums with after tax dollars.  Essentially the equity indexed universal life provides estate planning funds that you cannot out live. 

Single Premium Indexed Life Insurance:

Based on a LIMRA study, It is estimated that 70% of annuity assets are ultimately paid to beneficiaries.  That's alot of income tax payable in the future.  To address this issue, let us consider the single premium indexed life insurance (SPXL).  The SPXL accumulates indexed interest, guarantees a benefit at death, permits contract value access by 10% withdrawal, has a low interest loan option, an income settlement option, and can usually be obtained without the steps normally required for life insurance.  The difference with the single premium indexed life insurance is that when full contract value is paid upon death, there are no income taxes due. The SPXL are usually funded with lump sums from CD's, savings accounts, or other cash accumulations.

Partical Lump Sum Options:

This is available to teachers and employees of non-profit organizations.  Specifically teachers can, upon retirement, roll up to three years of their TRS funds into other safe options.  The Equity Indexed Annuity, and the Single Premium Deferred Annuity are both safe secure options with which to build liquidity in your estate.