July, 2009

"QUESTIONS AND ANSWERS"

With this issue, Narod Polski is initiating a “Question and Answer” column by William P. Seranko, Supervisor, District 1 and PRCUA’s Anti-Money Laundering Compliance Officer. If you have questions about life insurance or annuities, please email them to Bill at: william.seranko@prcua.org or PRCUA, William Seranko, 984 N. Milwaukee Ave., Chicago, IL 60642.

Q: If I purchase an Annuity to provide income for myself after I retire, will it earn compound interest? What happens if I die before the entire Annuity amount is distributed to me? Will my beneficiary get the rest and, if so, can they get it in one lump sum?

K.S. from Pennsylvania

A: Yes, your annuity earns compound interest each month and continues to grow in value. If the account holder dies before we start disbursing the funds, the value of the account will be paid to the designated beneficiary(ies). If the account holder dies after we start disbursing funds (contract is annuitized), the beneficiary(ies) will receive payment at the same frequency as the account holder was receiving them.

If eligible, they may even choose to start their own annuity account with the PRCUA. Once your contract is annuitized you or someone else will receive the required payments that were specified in the contract payment periods you selected.

When you retire, you may choose to have funds distributed in a variety of ways. Most funds are distributed monthly, but you can also choose to receive it less frequently or not at all. The choice is yours. It is recommended that you consult with a tax advisor to determine which course of action will best suit your own situation.

The Annuities that are sold by the PRCUA are Flexible Premium Deferred Annuities. This means that a member may make payments at any time before the contract is annuitized.

The payments could also be Flexible in money amounts.

PUT YOUR MONEY TO WORK FOR YOU!

Contact your local PRCUA Agent/Deputy or one of the PRCUA Satellite Offices in OH (800) 318-8234, PA (800) 558-8792 or WI (877) 690-5827 or the Home Office Membership Department toll-free at (800) 772-8632 or (773) 782-2600.  We will answer your questions and help you determine what type of Annuity or Life Insurance is best suited for your needs.  We are here to help you Today and in the Future.