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.
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.
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