Annuity Income Payments - Immediate Annuities
Companies may offer various income payment options. You (the owner) or another person that
you name may choose the option. The options are described here as if the payments are made to you.
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Life Only - The company pays income for your lifetime. It doesn't make any payments to anyone
after you die. This payment option usually pays the highest income possible. You might
choose it if you have no dependents, if you have taken care of them through other means, or if the
dependents have enough income of their own.
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Life Annuity with Period Certain - The company pays income for
a long as you live and guarantees to make payments for a set number of years even if you
die. This period certain is usually 10 or 20 years. If you live longer than the period
certain, you'll continue to receive payments until you die. If you die during the period
certain, your beneficiary gets regular payments for the rest of that period. If you die after the
period certain, your beneficiary doesn't receive any payments from your annuity.
Because the "period certain" is an added benefit, each benefit, each income payment will be
smaller than in a life-only option.
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Joint and Survivor - The company pays income as long as either you or your beneficiary lives. You
may choose to decrease the amount of the payments after the first death. You may also be able to
choose to have payments continue for a set length of time. Because the survivor feature is
an added benefit, each income payment is smaller than in a life - only option. Annuities
Death Benefit
In some annuity contracts, the company may pay a death benefit to your beneficiary if you die
before income payments start. The most common death benefit is the contract value or the premiums paid,
whichever is more. Fixed Index Annuity
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