What is a Planned-Spend Account?
A Relay Planned-Spend Account is an immediate annuity issued by Guggenheim Life and Annuity Company, a Delaware-domiciled insurance company, doing business as Guggenheim Life and Annuity Insurance Company in California. Your Planned-Spend Account provides a monthly cash flow stream over a predefined term. However, unlike most annuities, there are no penalties for withdrawing funds early. When you open a Planned-Spend Account and become a Relay customer, you will receive a written contract outlining exactly how your Planned-Spend Account works. This contract will include specifics regarding your monthly payouts and the free liquidity features of your Planned-Spend Account.
How safe is the money in my Planned-Spend Account?
The Planned-Spend Account is an immediate annuity, form number GLA-SPIA-RL-01 or a variation of such, issued by Guggenheim Life (d/b/a Guggenheim Life and Annuity Insurance Company in California; NAIC#83607) ("Guggenheim Life"), a Delaware-domiciled insurance company with its principal office in Indianapolis, Indiana.
The Relay Planned-Spend Account is not FDIC insured, as it is issued by an insurance company and not a bank, but it is backed by Guggenheim Life and Annuity Company, a highly rated insurance company (B++ by A.M. Best). Relay® and/or certain features may not be available in all states. Guggenheim Life is licensed in all states except New York.
The Relay Planned Spend Account is not FDIC insured, is not guaranteed by the bank, is not a deposit account, and may lose value.
The funds in your Relay Card account will be FDIC-insured and held at Sunrise Banks, N.A. Member FDIC.
Is the Relay Planned-Spend Account a non-qualified or qualified annuity?
The Relay Planned-Spend Account is a non-qualified annuity. A non-qualified annuity is funded with after-tax dollars from personal savings. By contrast, a qualified annuity is funded from pre-tax dollars (from vehicles such as a traditional IRA, 401(k), etc.) In the future, we may offer a qualified annuity option in addition to the non-qualified annuity option that we offer today.
Does my initial lump sum earn interest?
Yes, it does. Unlike most money market and savings accounts that have fluctuating interest rates, the interest you earn on the funds in your Relay Planned-Spend account is fixed. Each of your monthly payouts includes a portion of your initial lump sum, as well as whatever interest you’ve earned.
I didn’t receive my payout. What should I do?
For account issues such as missing Relay payouts, please call Relay customer support at 1-844-505-1477 (Option 1) to speak with a customer support representative who specializes in Planned-Spend Account payout issues.
Can I add more funds into my Planned-Spend Account?
No, you cannot add more funds into an existing Planned-Spend Account at this time. We are working on this product enhancement and hope to be able to offer Relay customers this flexibility in the future. You can, however, load additional funds onto your Relay Card. Note that you will not earn cash-back rewards on any additional funds that you load onto your Relay Card. Your cash-back earn rate only applies to your monthly payouts generated from your Planned-Spend Account.
See this FAQ for more information on how to load additional funds to your Relay Card.
If I wish to withdraw my Planned-Spend Account balance, will my funds be subject to surrender fees?
No. One of the big differences between Relay’s Planned-Spend Account and other annuity products in the market is that there are no penalties for withdrawing funds early from your Planned-Spend Account. However, to withdraw funds beyond your monthly payouts, you must withdraw your entire Planned-Spend Account balance, at which point your contract with Guggenheim Life and Annuity Company will be terminated. Planned-Spend Account balances withdrawn will not be eligible for cash-back rewards.
What would happen to my Planned-Spend Account if I were to die?
During the enrollment process to open a Planned-Spend Account (“Planned-Spend Account”), we’ll ask you to designate up to three primary beneficiaries that can receive your benefits. If you were to pass away, each beneficiary could elect to either a) continue receiving the monthly payouts via check or ACH from your Planned-Spend Account or b) liquidate their portion of your Planned-Spend Account. If you designate more than one primary beneficiary, the remaining benefit of your Planned-Spend Account will be split equally between beneficiaries, unless otherwise directed.
Relay customers can also establish up to two contingent (secondary) beneficiaries, who would continue receiving the monthly payouts of your Planned-Spend Account in the event that your primary beneficiaries have already died at the time of your own death. To modify your Planned-Spend Account primary or contingent beneficiaries, please sign and complete the Beneficiary Form in your Document Center when you log into your account at www.relayrewards.com.
Note: any outstanding balance on a customer’s Relay Card will be sent to his/her estate, not to beneficiaries, and no further cash back rewards will be earned. A Relay Card is non-transferrable. Please refer to the Cardholder Agreement for more information regarding the terms and usage of your Relay Card.
How do I close my Planned-Spend Account?
Call Relay customer support at 1-844-505-1477 (Option 1). We'll walk you through the process and mail you a check for your remaining Planned-Spend Account balance. You will need to sign and complete the Liquidity Form found in your Document Center when you log into your account at www.relayrewards.com.