Are your clients looking for a way to generate income now and preserve capital for the future? The split annuity strategy is a powerful, time-tested solution that does both — without market exposure.
What is a Split Annuity?
A split annuity uses two annuity contracts:
An Immediate Annuity – provides guaranteed income payments over a set period.
A Deferred Annuity – grows tax-deferred and is designed to restore the original principal by the end of the income period.
Together, they create a balance of immediate income and long-term principal preservation, along with tax-advantaged growth.
Key Benefits to Your Clients:
✔ Guaranteed income stream for a chosen period
✔ Return of original principal at maturity
✔ Tax-deferral on growth in the deferred annuity
✔ Flexibility in payment frequency (monthly, quarterly, etc.)
✔ May generate higher after-tax income compared to traditional options like CDs*
Ideal For:
✓ Pre-retirees or retirees seeking predictable income
✓ Clients hesitant to lock up all assets long term
✓ Conservative savers looking for a strategic way to manage taxes and income timing
This strategy can be tailored to fit a wide range of planning needs — and it’s easier to implement than many realize.
