Do you know what a single-life annuity is? If not, don’t worry, you’re not alone. Many people don’t know what this type of annuity is, but it’s important to understand the basics if you’re considering buying one. A single-life annuity pays out money to you for the rest of your life. That means once you start receiving payments from the annuity, you will continue to receive them until you die. This can be a great option for someone who wants a guaranteed stream of income for life and doesn’t mind giving up access to their money in return. Read on to learn more about single-life annuities and whether they might be right for you!
What is a Single Life Annuity?
A single-life annuity (SLA) is a type of annuity that pays out to the owner for their lifetime. The payout amount will depend on how much money was invested and when they start taking payments from the SLA. With an SLA, you are guaranteed payment until death. Payments can be distributed monthly, quarterly, semi-annually, or annually. Single-life annuities are also known as Straight Life Annuities.
Single-life annuities are characterized by having only one annuitant.
Single-Life Annuity Death Benefits
Not to be confused with a single-life payout from a lifetime income rider, a single-life annuity does not provide a death benefit to beneficiaries.
An owner of a single-life annuity receives higher income payments while alive in exchange for not providing a death benefit to their heirs.
If leaving a death benefit to beneficiaries is a must, consider an annuity with a lifetime income rider. Your loved ones will inherit the remaining annuity balance in a lump sum.
Next Steps
If you’re interested in a guaranteed stream of income for life, a single-life annuity might be right for you. These annuities can be a great option for someone who wants peace of mind knowing they’ll have money coming in each month, no matter what happens.
Use our free single-life annuity calculator to get estimates. Contact us to learn more about how a single-life annuity could work for you, and get a quote today!
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