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Immediate Annuity

An immediate annuity also called a Single Premium Immediate Annuity (SPIA), creates regular steady income that is purchased with a lump sum investment which begins immediately after the purchase.  Immediate annuities are usually provided by life insurance companies for retirement purposes and are guaranteed to continue for the rest of your life or for a period that you select.  The immediate annuity  distributions must begin within a year of the issue date.  As with deferred annuities, immediate annuities can be fixed or variable.

 

 

With an immediate annuity you can choose from a number of options.  A life option guarantees specified income for the rest of your life.  A period certain annuity guarantees income for a specified amount of time.  Lastly, there is a joint and survivor option, this guarantees income for the life of a primary and secondary person.


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