Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
An immediate income annuity is a contract in which an insurance company guarantees an uninterrupted stream of monthly payments in exchange for a single premium payment. The payments must start within 12 months and there are other payment plans to tailor the annuity to your particular needs. These usually have a higher immediate return than other investments
Renwanz Insurance & Financial Solutions, Carlsbad, CA
Immediate income annuities are for people that want a guaranteed stream of income for the rest of their life or a set period of time such as 10 or 20 years. You purchase the immediate income annuity with a single payment. Immediate fixed income annuities pay a guarantee income interest rate which gives you a predictable income. Income payments usually begin immediately.
You put a bunch of money into an annuity.
You get a check in 30 days. This is what the company calls immediate.
The amount of the check depends on how long your annuity is...
You can choose a certain period of time - years or your lifetime or spouses/beneficiary lifetime.
That is a great question! Unlike most annuities, which ask you to take a large sum of money, invest it, and sit back for a number of years before receiving the payouts, an immediate annuity is just that - one that starts paying out very quickly. In this type of annuity, you take a large sum of money (a settlement, inheritance, or just a big wad of cash) and invest it in the annuity, which then starts structured payments anywhere from 1-11 months later (Payments must start within the year from the point you purchased it). I hope that helps, thanks for asking!
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
What is an immediate income annuity? Well it means rather than purchasing an annuity to accumulate growth, you are now in the distribution phase of your planning. An immediate annuity creates a payout stream that based on your life expectancy provides a steady stream of income payments for the rest of your life. There are guarantees you can put into your plan that insure if you pass sooner than expected your beneficiaries receive the balance of the account or they get continued payouts for a certain number of years. The immediate annuity is a product that you can't outlive. It will pay you as long as you're alive.
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You put a bunch of money into an annuity.
You get a check in 30 days. This is what the company calls immediate.
The amount of the check depends on how long your annuity is...
You can choose a certain period of time - years or your lifetime or spouses/beneficiary lifetime.
This is called a joint annuity.