FAQs

  • What is an annuity?

    Annuities may sound complicated, but they are actually quite simple. An annuity is a contract between you and SBLI that helps you accumulate money and ultimately yield a steady income stream in retirement. With this contract, you make either a lump sum payment or a series of payments over time, and SBLI promises to make payments to you at a guaranteed rate, either immediately or at a later date.

  • Is an annuity appropriate for funding my retirement?

    An annuity may be entirely appropriate as a part of your overall retirement planning, particularly because:

    • It is tax-deferred;
    • You will enjoy a guaranteed interest rate;
    • You may have "maxed-out" your 401(K) contributions; and
    • You want to have a steady income stream for the rest of your life.
  • Can I withdraw funds from my annuity?

    For deferred annuities, yes you can. You can make one withdrawal of up to 10 percent of the annuity’s accumulated annual value after the first year. Some restrictions may apply, depending on your age.

    If you withdraw funds during the first 7 years, surrender charges will apply as shown below.

    During Year 1 2 3 4 5 6 7 8
    Surrender Charge 7% 6% 5% 4% 3% 2% 1% 0%

    If you would like to make a withdrawal, simply contact our toll free Call Center at 1-800-694-7254. Our representatives are available each business day, Monday – Friday, from 8:00 A.M. through 6:00 P.M. (ET).

    Note: When contacting our call center, you will be requested to provide positive verbal identification as an annuity owner.

    Our mailing address is:
    SBLI
    P. O. Box 4048
    Woburn, MA 01888-4048

  • How do I designate a beneficiary?

    You designate a beneficiary at the time you purchase an annuity from SBLI.

  • Can I change a beneficiary?

    The annuity’s owner can change the annuity’s beneficiary at any time. Most beneficiary changes can be made by the annuity’s owner using an Annuity Beneficiary Change Request or an IRA Change of Beneficiary Designation.

    If you wish to speak with an SBLI representative, simply contact our toll free Call Center at 1-800-694-7254. Our representatives are available each business day, Monday – Friday, from 8:00 A.M. through 6:00 P.M. (ET).

    Note: When contacting our call center, you will be requested to provide positive verbal identification as an annuity owner.

    Our mailing address is:
    SBLI
    P. O. Box 4048
    Woburn, MA 01888-4048

  • Why should I purchase an SBLI annuity?

    It’s perfect for generating income in retirement because it will provide you with regular payments over the course of your entire life (or for as long as you choose). In addition, one of the best features of SBLI’s Deferred Annuity is tax-deferred interest growth. Simply put, the earnings on your annuity will grow and you won’t pay federal or state taxes on them until you begin to make withdrawals.

    Click here for thumbnail charts that highlight our annuities’ benefits

  • How do I make a payment for my existing annuity?

    It depends on the annuity. For the Life Saver III, you can make up to three contributions per year at a minimum of $1,000 per contribution.

    For the IRA Annuity, you can make an unlimited number of contributions during the year, provided the contributions are between $500 and $250,000 and do not exceed $1,000,000 (Remember annual additions to an IRA are subject to IRS limits as well). Any premium above that limit requires prior approval.

    If you wish to speak with an SBLI representative, simply contact our toll free Call Center at 1-800-694-7254. Our representatives are available each business day, Monday – Friday, from 8:00 A.M. through 6:00 P.M. (ET).

    Note: When contacting our call center, you will be requested to provide positive verbal identification as an annuity owner.

    Our mailing address is:
    SBLI
    P. O. Box 4048
    Woburn, MA 01888-4048

  • How do I know who is the beneficiary of my annuity?

    Please contact Customer Service with your question or request. Please note this information can only be released to the annuity owner.

    If you wish to speak with an SBLI representative, simply contact our toll free Call Center at 1-800-694-7254. Our representatives are available each business day, Monday – Friday, from 8:00 A.M. through 6:00 P.M. (ET).

    Note: When contacting our call center, you will be requested to provide positive verbal identification as an annuity owner.

    Our mailing address is:
    SBLI
    P. O. Box 4048
    Woburn, MA 01888-4048

  • What is a beneficiary?

    The beneficiary is the person, people, and/or organization that would receive the annuity’s proceeds in the event of a death claim.

  • What do you mean by "tax-deferred"?

    Tax-deferred means that you do not pay taxes on the earnings of your annuity today. You will pay taxes on the earnings at a later date, when you withdraw your earning

  • How are payments/withdrawals from my deferred annuity taxed?

    Your annuity’s earnings, when withdrawn, are taxed as ordinary income. Your contributions, when withdrawn, are not taxed. (Note: Traditional IRA contributions may be taxed upon withdrawal depending upon their tax deductibility when contributed.)

    From the IRS’s point of view, withdrawals are treated as coming from earnings first, then contributions. Withdrawals of earnings prior to age 59½ are generally subject to an additional 10% tax penalty. There are additional rules and exceptions. SBLI recommends that you speak with your tax advisor for more details.

  • How are payments from an Immediate Annuity taxed?

    Your Immediate Annuity’s earnings, when withdrawn, are taxed as ordinary income. Your contributions, when withdrawn, are not taxed.

    Since your SBLI Immediate Annuity is funded by a lump-sum payment, a percentage of your original lump-sum payment is allocated towards your contribution amount and that part of the payment is not taxed. The rest of the payment is taxable as ordinary income. There are additional rules and exceptions; SBLI recommends that you speak with your tax advisor for more details.