Payment Options

Lump Sum Payment as a Check – A single, one-time check for the entire policy proceeds will be delivered to your address on record with Western & Southern Life.

Lump Sum Payment to W&S Life Account – The entire contract proceeds, to which you are entitled, will be transferred to a W&S Life Account in your name. W&S Life Accounts reside with Western & Southern Life but are administered by The Northern Trust Company. Your account balance would earn interest at a rate of 0.10%*. Upon election of this settlement option, all other settlement options under your contract will not be preserved (unless otherwise required by law). Your account balances are not FDIC insured, but may be within coverage provided under your State Guaranty Association. State Guaranty Association coverage and limits on coverage vary. Please contact the National Organization of Life and Health Insurance Guaranty Associations (www.nolhga.com) or contact your State Guaranty Association to learn more. Kansas residents please see the disclaimer provided with your claim paperwork regarding the state guaranty association. For beneficiaries in the state of Louisiana, the contact information is 1702 N 3rd St, Baton Rouge, LA 70802, telephone number (225) 342-5900. This option is available for amounts totaling $10,000 or higher per beneficiary.

Interest Income (Interest Payments)** – Interest earned will be paid in regular intervals – monthly, quarterly, semi-annual, or annual. The proceeds are available for full or partial withdrawals or can be applied to another option at any time.

Interest Accumulation** – Policy proceeds will be held by Western & Southern Life on your behalf and will earn interest. Interest earned will be added to the total policy proceeds and continue to earn interest. At any time, the proceeds would be available for full or partial withdrawals or applied to another option.

Installment Income (Fixed Period/Fixed Amount)** – Payments will be made in installments as specified by you (monthly, quarterly, semi-annual, annual) for a specific number of years (5-30) or for a specific amount. One this option is established, it cannot be changed. The unpaid portion of proceeds will earn interest. All periods may not be available depending on your age, tax status, and any guarantees in the policy.

Life Income With a Period Certain** – The proceeds and interest are used to provide an income for your lifetime. A period certain can be elected, and if you should die within the period certain, the remainder of the proceeds would be payable to whomever you designate as beneficiary. Period certains are 10, 15, and 20 years. Once this option is established, your payment option cannot be changed for the balance of the period certain. Unpaid portions of the proceeds will earn interest.

Life Income No Refund – paid monthly** – The proceeds and interest are used to provide an income for your lifetime with payments stopping at your death. No payments are due after your death and Western & Southern Life has no further obligation to your estate or any other person. Once this option is established, your payment option cannot be changed. The taxable amount will be based on the proceeds applied to this option and your life expectancy.

The Following Options Are Available on Annuity Contracts Only

Lump Sum Processed as a Direct Exchange, Transfer, or Rollover – In order for your payment to be treated as a direct exchange, transfer, or rollover, you must submit the transferring company’s Letter of Acceptance and required paperwork. The check will then be delivered to the company’s address provided on the paperwork.

Elect to Become Successor Owner – If the surviving spouse or joint owner on a jointly owned contract, or the sole primary beneficiary of a single-owner contract, is the surviving spouse of the deceased owner or joint owner, the spouse can elect to continue the contract as the owner instead of receiving the Death Benefit. If the spouse elects this option, the spouse will be the owner subject to the same rights, terms, and conditions as were applicable to the deceased owner. If the annuitant is not living on the date of this election, the spouse will become the annuitant.

Defer 5 Years – This option is for non-qualified contracts and qualified contracts with non-natural beneficiaries only. Payout on the contract will be deferred for five years. Partial withdrawals or a full withdrawal will be allowed anytime during the deferral period. Any remaining balance will be distributed on the fifth anniversary of the date of death.

Defer 10 Years – This option is available for qualified contracts only. This option is available only for a beneficiary who (i) is an Eligible Designated Beneficiary: the decedent’s surviving spouse, a minor child, or an individual who is disabled, chronically ill, or not more than ten years younger than the decedent, if the original owner passed away after 12/31/2019 and passed away before reaching his or her required beginning date for RMD purposes (age 72), or (ii) is a designated beneficiary and is not an Eligible Designated Beneficiary, regardless of whether the original owner passed away before reaching his or her required beginning date for RMD purposes. Partial withdrawals or a full withdrawal will be allowed anytime during this 10-year period. At the end of such 10-year period, you will be required to take the remaining death benefit in a single sum. The remaining balance will automatically be distributed by December 31 of the tenth anniversary of death. Please note, if the original owner passed away after 12/31/2019, attained the required beginning date for RMD purposes (age 72), and you are an individual who is NOT an Eligible Designated Beneficiary, you will be required to take Required Minimum Distribution payments based on your life expectancy during the 10-year period after the death of the original owner.

Continue Installment Payments – This option is for immediate annuities only. Installment payments will continue under this contract for the remaining duration for the guarantee period or life income for joint life. No additional contributions can be made.

Minimum Distributions Over Your Life Expectancy – This option is for non-qualified and select qualified contracts only. This option is an election to receive your death benefit proceeds, at least annually, over your life expectancy. A beneficiary of a qualified contract may choose this option if the beneficiary is an Eligible Designated Beneficiary: the decedent’s surviving spouse, a minor child, or an individual who is disabled, chronically ill, or not more than ten years younger than the decedent. Your annual payment is required to be withdrawn by December 31 of each year after the year the first payment was made. If you fail to take your payments in this manner, you may incur tax penalties. No additional contributions can be made.

Irrevocable Annuity Option – This is an irrevocable option to apply your death benefit payment to an immediate annuity. Payments are based on the life of the beneficiary and are payable in the form of a life annuity or an annuity for period certain not exceeding the beneficiary’s life expectancy. No additional contributions can be made.

The policy on the insured may include additional options not listed here. If you want to inquire whether additional options exist, please contact us by calling 1-800-926-1315.

If the Owner chooses one of the settlement options listed above prior to the death of the Insured, you may not select different option. Your choice of settlement options may be affected by the amount payable. Minimum amounts are required for some settlement options. See settlement options in the policy for further information. If you have any questions regarding the W&S Life Account or other settlement options, including the current interest rates, you may call 1-800-926-1315.

Please Note:

• In the event you fail to expressly elect any option above, you shall receive payment by way of lump sum payment as a check.
• Your election regarding the payment of policy proceeds may have various tax implications and you may wish to consult an attorney or tax advisor regarding your elections.
• If you elect a settlement option other than a lump sum payment, you may need to complete additional forms, which will be provided to you promptly upon our receipt of your election.