Annuity Settlement Options

Estate planning flexibility and control

The Empire Life Annuity Settlement Option provides clients with greater flexibility in distributing theirdeath benefits to meet each beneficiary’s needs.Most settlement options only offer a lump-sum or annuity payout. This ‘one or the other’ approachmay not meet the needs of your clients who demand greater flexibility and control. Our Annuity Settlement Option lets clients choose a combination of lump sum and annuity payments for eachbeneficiary.

Key information
• Customize with a combination of lump sum and annuity payments
• Add to any in-force or new Empire Life contract
• Available with registered and non-registered contracts
• Accommodates multiple beneficiaries and their unique needs
• Can be easily changed or revoked at any time
• No costs to the estate or the beneficiaries
Our Annuity Settlement Option may suit clients who:
• Worry their beneficiaries may not cope well with a large wealth transfer
• Have dependent beneficiaries that require lifetime income for ongoing care
• Want to distribute their assets in a gradual and discreet manner outside their will

Annuity Settlement Option – common questions and answers

1. What is the Empire Life Annuity Settlement Option?

The Annuity Settlement Option allows clients to customize how death benefit proceeds are paid out tobeneficiaries. Rather than having the proceeds paid out all at once, clients can choose to distribute someor all of the proceeds to beneficiaries gradually, as annuity payments.

2. What makes the Empire Life Annuity Settlement Option different?

Most annuity settlement options offer only a full lump sum payment or full annuity payment option.Our Annuity Settlement Option lets clients choose any combination of lump sum and annuity payments,giving clients the ability to design a custom solution that meets their unique needs and wishes.

3. What type of client would be interested in the Annuity Settlement Option?

It may be appropriate for clients who:

• Worry their beneficiaries may not cope well with a large wealth transfer
• Have dependent beneficiaries that require lifetime income for ongoing care
• Want to distribute their assets in a gradual and discreet manner outside their will

4. What type of policies can the Annuity Settlement Option be added to?

It can be added to any new or in-force Empire Life insurance contract that has a beneficiary designation.
This includes:
• Guaranteed Investment Fund contracts and Class Plus 2.1
• Guaranteed Interest Contracts
• Single Premium Immediate Annuities
• Term, Whole Life, Universal Life and Critical Illness policies

5. How does a client add the Annuity Settlement Option to their policy?

Clients can add it to any new or in-force contract by completing the Empire Life Annuity SettlementOption form (INV-768). The form has important information about the Annuity Settlement Optionincluding terms and conditions. It can be downloaded from or ordered on the Empire Lifeadvisor website.

6. Once the Annuity Settlement Option has been added is there anything else to do?

No. Once the form has been submitted, Empire Life does all the work. However we recommend thatclients revisit their selection on a regular basis to ensure their needs and wishes are up-to-date. Thisshould be done as a part of their financial review.

7. Can my client modify or retract the Annuity Settlement Option after it has been added?

Yes. It may be modified or retracted at any time as long as the policy is in-force. A new copy of the
Annuity Settlement Option form must be submitted if the client wishes to modify payment features. Ifa client no longer wants it on their policy, new beneficiary designations should be submitted using theD-0017 Beneficiary Designation form available on the Empire Life advisor website.

8. Do my client’s beneficiaries have to do anything to begin receiving their annuity payments?

Yes. When Empire Life receives notification of the death of the life insured, the beneficiary will be asked to
complete two forms:

• The Claimant’s Statement
• An Empire Life Single Premium Immediate Annuity (SPIA) application

The SPIA application must be for the same type of annuity selected for them under the Annuity Settlement Option. Completion of the application will also ensure that the beneficiary receiving the annuity payments can name a beneficiary for any death benefit the annuity policy may have.

9. How will I know if the Annuity Settlement Option has been added to the policy?

The letters “ASO” will be added to their beneficiary record. This will also be visible on The Business Centre and Investor Access.

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