If you are concerned about outliving your savings, perhaps an income annuity will fit your needs. An annuity can offer a guaranteed lifetime income that you can’t outlive.
Fixed income annuities are offered with a number of payment options, allowing you to structure payouts according to your financial goals and objectives. Consider these four income streams:
Joint life: This option provides income for two people, as long as either client is alive. When one client passes away, payments continue to the survivor.
Period certain only: This allows the client to target how long they need an income stream. If the client passes away before the end of the certain period, remaining payments continue to the designated beneficiary.
Life with a period certain: In this scenario, the annuity sponsor will pay out income for a client’s lifetime. If the client were to pass away prior to the end of the certain period elected, the beneficiary receives the remaining payments.
Life only: This is the least-commonly selected payout. When you die, payments cease—no matter what. This can be risky, but the upside is this option provides the highest payouts.
My mother-in-law, now deceased, used the joint life immediate annuity to generate a lifetime income from the proceeds of the sale of her home. Now my wife is receiving an income stream for the balance of her life from this same annuity policy.
A guaranteed lifetime income, one you cannot outlive, provides peace of mind. Should this be part of your financial plan? Ask your agent or advisor to see if it fits your needs.
