How Do Life Annuities Work?
61667 POINTSview profileSteve SavantSyndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale ArizonaLife annuities are generally a lifetime payout of income based on the companies net interest rate and mortality credits assigned to the policy. Life only payout can generate an income you can't outlive. This is important because the number one risk in retirement is human longevity. So even if you live past age 100, your income continues.Answered on August 3, 2013flag this answer.JPG)
63333 POINTSview profilePeggy MaceMost of the U.S.Life annuities can be immediate annuities (a lump sum is paid into the annuity and payments begin immediately) or deferred (payments are made into the annuity on a regular basis until annuitization begins). The person receiving payments from the annuity chooses to receive them for the rest of their life. If their life would end after a short time, their may be a guaranteed feature to get back at least what they paid in. In any event, the annuity pays until death occurs.Answered on August 3, 2013flag this answer
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