Personal Finance: Annuity Deal That Continues after Death
Related to Annuity Payment Options Annuity Payments The series of payments made to the Owner or any named payee after the Annuity Date under the Annuity Option selected. ANNUITY PERIOD: The period of time beginning with the Annuity Date during which Annuity Payments are made. Annuity means a ...
An annuity is a long-term contract with an insurance company. When you purchase an annuity, you agree to pay the insurance company a monthly premium or lump sum payment. In return, the company provides you with a single payout or a series of payouts over a specified period. The payout ...
Receive a Lump-Sum Payment Most commonly, the remaining funds left over in the account will either be provided in the form of a lump-sum payment or through a stream of payments. If you choose a lump sum payment, you will simply receive 1 check for the remaining funds, or your beneficiar...
Also there are two types of Joint and 50% reducing annuities: One type reduces on either death, meaning, whoever dies first causes the survivor to gets a reduced payment. The other type of Joint 50% reducing annuity only reduces upon the death of the PRIMARY annuitant. This type would NOT...
Under an annuity certain, a specified number of payments are made, after which the annuity stops. With a contingent annuity, each payment depends on the continuance of a given status; for example, a life annuity continues only as long as the recipient survives. Contingent annuities depend on ...
Income from annuity may be immediate or deferred. As such there are three common choices for annuity payment terms: Life only annuity payments: Here the payments continue as long as one lives but stops immediately upon death of the annuitant. Even if it is forty or fifty years, the guarantee...
Wouldn't it be nice if you could add another Social Security payment? Wouldn't that be great when that money's hitting every month? Can you do that? Indeed, you can. Learn More Article Casting Your Vote With Annuity Strategies in Mind ...
One potential drawback of an immediate payment annuity is that payments typically end upon the death of the annuitant, and the insurance company keeps the remaining balance. So an annuitant who dies earlier than expected may not get their money's worth out of the deal. On the other hand, ...
The owner's entire interest in the annuity must befully vested, and the owner is not allowed to transfer any of the balance to another person (though they may name a beneficiary to receive the money after their death). The annuity'spremiumsmust be flexible so that the owner can change th...