There are many types of annuities and distribution options.
Single premium annuities come in two forms.
Single premium deferred annuities and single premium immediate annuities.
SINGLE PREMIUM Deferred ANNUITIES A Single Premium Deferred Annuity (SPDA) works the way the name suggests.
You give the insurance carrier a premium payment only once prior to the policy issuing.
You will not be able to make additional premium payments to the annuity contract.
Immediate Annuity or Single Premium Immediate Annuity (SPIA) will distribute income immediate once the policy issues.
The policy can begin payments right away or up to a year.
This is a great option for people who want an income for life.
Make sure this option works best for your situation as there could be better annuitization options available.
DISTRIBUTION OPTIONS What the heck does annuitization mean? It is insurance jargon for taking money from your annuity.
Taking payments can take many forms and it is your choice to choose the best annuitization option for you.
Lifetime Income Most annuities will allow you to take an income you cannot outlive called a Life only or Life payment.
You will receive a payment for as long as you live.
It works just like a pension but the check comes from the insurance company.
Period Certain Your options are limitless.
You can choose to take a payment from your annuity for a period certain.
Most people take 10 or 20 year period certain only.
The payments stop at the end of the period.
Period Certain plus Life If you want to make sure you will receive an income for the rest of your life and cover a period certain, then a period certain plus life is the way to go.
Depending on your age, you might want to consider purchasing a 10 year certain plus life.
If you pass away prior to the period certain is reached, the balance of your money will go to your beneficiaries.
If you live past your period certain your payments will continue until your death.
Joint and Survivor If you want to make sure you and your spouse receive an income for the rest of each of your lives', you might want to choose this option.
You can even choose a period certain plus life.
Single premium annuities come in two forms.
Single premium deferred annuities and single premium immediate annuities.
SINGLE PREMIUM Deferred ANNUITIES A Single Premium Deferred Annuity (SPDA) works the way the name suggests.
You give the insurance carrier a premium payment only once prior to the policy issuing.
You will not be able to make additional premium payments to the annuity contract.
Immediate Annuity or Single Premium Immediate Annuity (SPIA) will distribute income immediate once the policy issues.
The policy can begin payments right away or up to a year.
This is a great option for people who want an income for life.
Make sure this option works best for your situation as there could be better annuitization options available.
DISTRIBUTION OPTIONS What the heck does annuitization mean? It is insurance jargon for taking money from your annuity.
Taking payments can take many forms and it is your choice to choose the best annuitization option for you.
Lifetime Income Most annuities will allow you to take an income you cannot outlive called a Life only or Life payment.
You will receive a payment for as long as you live.
It works just like a pension but the check comes from the insurance company.
Period Certain Your options are limitless.
You can choose to take a payment from your annuity for a period certain.
Most people take 10 or 20 year period certain only.
The payments stop at the end of the period.
Period Certain plus Life If you want to make sure you will receive an income for the rest of your life and cover a period certain, then a period certain plus life is the way to go.
Depending on your age, you might want to consider purchasing a 10 year certain plus life.
If you pass away prior to the period certain is reached, the balance of your money will go to your beneficiaries.
If you live past your period certain your payments will continue until your death.
Joint and Survivor If you want to make sure you and your spouse receive an income for the rest of each of your lives', you might want to choose this option.
You can even choose a period certain plus life.