Annuity benefits are determined by the amount of the single premium payment, your age, gender and the annuity payment option you choose. There are several different annuity payout options available to you.
- Single Lifetime Income Option — Compared to other payout options, this option pays the highest annuity benefit payment amount since there is no guaranteed number of payments. Payments continue for the life of the annuitant and end upon his or her death. There are several additional income options within this category, including a Single Lifetime Income with a Guaranteed Period of 10 or 20 years, a Single Life Increasing Income with or without a Guaranteed Period and a Single Lifetime Income with a Refund Certain option.
- Joint and Survivor Option — This option provides guaranteed¹ payments over two lives—the annuitant and joint annuitant—which makes it a popular option for spouses. Payments cease after the death of both joint annuitants. There are several variations of Joint and Survivor options available, including Joint and 2/3 Survivor, Joint and ½ Survivor, and Joint and Survivor with Increasing Income. The Joint and Survivor Option may also be combined with a Guaranteed Period Option, which means if both annuitants die within the guaranteed period, a beneficiary would receive the remainder of the payments.
- Guaranteed Period Certain Option — This option provides benefits that are guaranteed¹ for a certain period of time (e.g., 10 or 20 years). The income is only payable for the period of time elected and does not continue for life. If the annuitant dies before the guaranteed¹ period has ended, the remainder of the payments for any guaranteed¹ period will be made to his or her beneficiary.
Once your annuity is issued, monthly payments can begin within as little as 30 days. Immediate annuity payments must begin within 12 months of issue and can be received monthly, quarterly, semi-annually or annually. Immediate annuities have no cash or surrender value. There is no refund of the purchase payment once the “Free Look” period has expired after annuity payments have begun. The only payments made after the annuitant dies are any remaining guaranteed¹ payments based on the annuity payment option chosen. An immediate annuity is not a savings account or an investment such as a stock, bond or mutual fund.