NU Online News Service, Aug. 16, 1:06 p.m. – TIAA-CREF Life Insurance Company, New York, is now selling single-premium immediate annuity contracts to the general public in 28 states.
The company, an insurance subsidiary of the Teachers Insurance and Annuity Association, hopes to begin selling SPIA contracts in most other states by the end of the year.
The TIAA-CREF annuity can pay either a stream of variable income payments or a stream of fixed income payments, or a combination of both, the company says.
Annuitants can also change their income choices, even after they have begun receiving income payments, TIAA-CREF says.
The minimum initial contribution is $25,000.
Purchasers can buy one-life annuities, which provide payments while one annuitant is still alive; two-life annuities, which provide payments as long as one of two annuitants is still alive; and fixed-period annuities, which provide payments for specified periods ranging from five to 30 years.
The investment options include a fixed account, a stock index account, a growth stock account, a growth and income account, an international stock account, and an account that invests only in companies that meet the managers’ moral standards.
TIAA-CREF Life is the company officially writing the contracts.
The parent organization, TIAA, is a large, nonprofit group that manages retirement plans for teachers and other association members.