Single Premium Annuity (SPIA)
If you are looking for consistent and reliable income that begins right away and is guaranteed to continue for the rest of your life (or for a specific period of time), then a SPIA may be the best option for you.
An immediate annuity will provide you with a guaranteed paycheck for life, as soon as you need it.
The reality today is that most people will be retiring without the help of a traditional pension. That could present a problem when it comes to generating an income stream that is guaranteed to last the rest of your life. Luckily, immediate annuities solve that problem.
When you opt for an immediate annuity, you purchase it with a single lump sum amount, called a “premium.” In return for your premium payment, the insurance company promises to make regular payments to you or, jointly, you and your spouse (depending on how you choose to set it up). Your immediate annuity payouts will begin right away, hence the word “immediate.” The annuity payouts can continue for the rest of your life or for a certain period of time. The choice is yours.
Many of these annuities now offer a refund option, which is key because if you don't use all the money before you pass away the remainder is given to your beneficiaries.
5 Benefits When You Own a SPIA:
- NO fees
- Guaranteed income for life, no matter what
- Diminishes the threat of outliving your money in retirement
- Offers the highest contractually guaranteed income if you need it now
- Always receive fixed, reliable payments no matter what’s happening in the stock market