Definition of Pure Life Annuity
A pure life annuity, also known as a straight life annuity, is a financial product that provides regular payments to an individual, known as the annuitant, for the duration of their life. Upon the death of the annuitant, these payments cease, with no residual value payable to beneficiaries.
Pure Life Annuity Settlement Option
The pure life annuity settlement option refers to the method in which the annuity is paid out. It involves regular payments to the annuitant until their death, after which payments stop completely.
Alternative term for Pure Life Annuity
Another term used for a pure life annuity is a “straight life annuity.” This term emphasizes the straightforward nature of the annuity, where payments are made continuously until the annuitant’s death.
Pure Life Annuity vs. Pure Annuity
A pure life annuity and a pure annuity are essentially the same. Both terms describe an annuity plan that provides payments for the life of the annuitant without residual benefits to heirs.
Pure Life Annuity Options
|Pure Life Annuity
|Other Annuity Types
|Lifetime of Annuitant
|Varies (e.g., fixed term, lifetime with guarantee period)
|May have residual value for beneficiaries
|Generally higher (due to no residual benefit)
|Varies based on structure
|Longevity risk (benefit stops at death)
|Varies based on type
A pure life annuity is a financial tool offering lifetime income with no beneficiary benefits after the annuitant’s death. It’s a straightforward option for those seeking security in regular payments during their lifetime. For personalized advice and to explore if a pure life annuity suits your financial goals, contact us today for a free quote.
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Frequently Asked Questions
Can I access my funds in a pure annuity before the annuity term ends?
It depends on the type of annuity you have. Deferred annuities, you can. SPIAs, you can not.
How does a pure annuity work?
A Pure Annuity is a contract where an individual makes a lump-sum payment to an insurance company in exchange for a guaranteed stream of income payments over a specific period of time without any death benefit or other features.