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Midland National
A coordinated strategy that uses a Single Premium Immediate Annuity to automatically fund life insurance premiums each year. It's designed for individuals aged 40-70 with liquid assets who want retirement income, estate protection, and a tax-efficient death benefit for beneficiaries.
Key Features
Automatic Premium Funding
Eliminates manual payment burden; ensures consistent fundingEach year's annuity distribution is automatically transferred to pay the life insurance premium
MEC Protection
Preserves tax-free loan and withdrawal benefitsThe structured funding approach prevents the life policy from becoming a Modified Endowment Contract
Period Certain Payout Options
7-20 year flexibilityChoose annuity distributions over 7-20 years or amount certain options
Tax-Efficient Income
Minimizes annual tax liabilityCombination of generally tax-free policy loans and withdrawals plus tax-deferred annuity growth
Death Benefit Legacy
Larger estate for heirsLife insurance death benefit passes tax-free to beneficiaries
Highlights
Automatically funds life insurance premiums using annuity distributions, eliminating MEC risk
Creates a larger tax-free death benefit for beneficiaries while generating retirement income
Simplified one-location submission process handles both life and annuity paperwork together
Provides generally tax-free income through policy loans or withdrawals during retirement
Best For
Individuals or couples aged 40-70 with liquid assets who want to maximize retirement income, protect against MEC status, and create a tax-efficient death benefit for estate planning purposes.
Consider Alternatives If
Those who lack sufficient liquid assets to fund the initial SPIA premium or who do not need life insurance protection and estate transfer planning.
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