SPIA/DIA Calculator

🔵 SPIA Calculator – Full Step-by-Step Training Guide

A complete breakdown of what the calculator does and how to use it

🔵 SPIA Calculator – Simple Full Training Guide

Easy step-by-step instructions anyone can follow

✅ What This Tool Does

The SPIA calculator helps you figure out:

• How much income your client will get, or
• How much premium they need to get a certain income

It shows:

• Lifetime income
• Guaranteed years
• Refund options
• Joint payouts
• Immediate or deferred income
• Clean client-ready reports

🔵 How to Open It

1. Go to the blue menu at the top.
2. Click Calculators.
3. Select SPIA Calculator.

Each field has a ? icon that explains what it means.

🔵 Step-by-Step Instructions

1. Choose the Annuity Type

Life Contract = Pays for as long as the client lives.

Certain Period = Pays for a set number of years only.

Example: Life Contract – Joint

2. Choose a Guarantee Type

This controls what happens if the client dies early.

• Cash Refund
• Installment Refund
• Period Certain

Example: Life with 10-Year Period Certain

3. Enter the Period Certain

This is the minimum number of years the annuity will pay (e.g., 10).

Leave at 0 for pure life-only.

4. Temporary Period (Maximum Payments)

This is the maximum number of years payments last.

Example:

If you put 12, payments stop after 12 years even if the client is alive.

Leave at 0 if you don’t want a maximum limit.

5. Choose What You’re Solving For

Pick one:

• Solve for Income (enter premium → shows income)
• Solve for Premium (enter target income → shows premium needed)

Example: Solve for Income.

6. Enter Client Information

• Name
• Birthdate
• State
• Gender

For joint cases: enter info for both clients.

7. Pick Joint Type

Controls what happens after the first spouse dies.

Reducing on First Death = income drops when either spouse dies.

8. Continuation Percentage

How much income the surviving spouse gets.

Example: 50% continues.

9. Funding Type

Choose:

• Non-Qualified
• Qualified (IRA, 401k, etc.)

10. AM Best Rating Filter (Optional)

Lets you block out lower-rated carriers.

11. ROP (Return of Premium) Before Income Starts

If the client dies before payments begin:

• ROP = Yes → premium returned to beneficiaries
• ROP = No → no refund

Example: Leave as No.

12. Index Type (Optional)

Adds a cost-of-living increase each year (2%–6%).

Rarely used for SPIAs.

Most agents choose None.

13. Purchase Date

Leave today unless you know the exact future purchase date.

14. Payment Frequency

Choose:

• Monthly
• Quarterly
• Semi-Annual
• Annual

Example: Monthly

15. Income Start Date

This decides if it’s SPIA or DIA.

• Start within 12 months → SPIA (immediate income)
• Start after 13+ months → DIA (deferred income)

The system updates automatically.

16. Click “Proceed”

You’ll see:

• All available carrier products
• Monthly payout amounts
• Guarantee features
• Ratings

17. Generate a Report

Click the Report button to download a full client-ready PDF.

🔵 QLAC (Only for Qualified Money)

If qualified funds are selected:

• A QLAC option appears
• Turn it ON
• Set the income start date 13+ months out (can delay to age 85)
• Click Proceed

QLACs help delay RMDs until age 85.

🔵 Who Usually Buys a SPIA? (Add this to your training)

SPIAs are usually best for:

1. Retirees who need income NOW

People who want a monthly “paycheck” starting right away.

2. People afraid of outliving their money

Guaranteed income = peace of mind.

3. Clients who want pension-like income

Perfect for people who say:

“I just want something guaranteed every month.”

4. Conservative investors

People who don’t want market risk.

5. People rolling over IRA or 401(k) money

Commonly used to convert savings into predictable income.

6. Widows, widowers, or single clients

They want simple, reliable income without managing investments.

7. Clients with health issues (sometimes)

Because payout rates can be strong with refund or guarantee options.

8. People needing “bridge income”

Great for covering income gaps until:

• Social Security
• Pension
• RMDs
• Other income sources

9. High-net-worth clients using income buckets

Often used to secure their "guaranteed income floor."

🔵 Need Help?

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