What is a Guaranteed Life Income Annuity?

Have you ever heard of a GLIA or “Guaranteed Life Income Annuity”? It’s a way to build savings tax-deferred. And a way to ensure you get annual income payments for life. It could be thought of as a way to still receive something like an annual salary—but one that lasts as long as you live.

According to a recent Center for a Secure Retirement study, nearly eight in 10 (79%) middle-income Boomers have no money set aside specifically for their long-term care needs. But the GLIA or GLIA Plus, Guarantee Lifetime Income Annuity with Enhancement Benefits, can help you prepare for your future income—and future healthcare needs.

Opening a GLIA gives you predictable, dependable income payments for life (provided no withdrawals are taken). You’ll know exactly what you’ll receive each year, which allows you to budget for your long-term care. A GLIA Plus is even more flexible, and it allows you to receive a temporary increase in your Lifetime Income Withdrawals (LIWs) in certain circumstances, for up to two years.

You start the fund by contributing a fixed amount into an annuity. The savings then grow, tax-deferred. This means you won’t pay taxes until you withdraw them. And when you do, it’s simply taxed as regular income. This means you’ll earn interest on your interest—helping your savings grow even faster.

One of the greatest benefits of a GLIA is that it can help heirs avoid the expensive, time-consuming probate process. The money passes right to a beneficiary. Provided the annuity has value, the spouse can elect the GLIA or GLIA Plus option.

Not only that, but it can give you and your family members peace-of-mind, knowing that you’ve prepared for the cost of the long-term care needs you may have. The GLIA Plus only provides an enhanced benefit for two years, though it should not be considered as a replacement for Long Term Care Insurance.

The amount of income you receive will be determined by the age you are when you decide to take your Lifetime Income Withdrawals, how long you’ve had the annuity, and whether you have a Single Life Option or Joint Life Option.

With a GLIA or GLIA Plus, you can guarantee an annual income for the rest of your life, which may be a great way to pay for your needs as you get older. Whether you decide to use in-home care or want to move to an assisted living facility, a GLIA or GLIA Plus could help you create a budget so you know exactly what you can afford.

To learn more about a GLIA and GLIA Plus (and the differences), contact a Bankers life agent today.


This material provides general information about the described insurance product(s) for educational purposes only. This is not intended as investment advice or to recommend the insurance product(s).

The Company and its producers do not provide legal or tax advice. Each individual should seek specific advice from their own tax or legal advisors. The general and educational information presented in this material is a sales and marketing piece for insurance products offered by Bankers Life and Casualty Company.