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	<title>New answer on: What Is Single Premium Immediate Annuities?</title>

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		<title>By: William Bridgers</title>

		<link>https://insurancelibrary.com/annuities/what-is-single-premium-immediate-annuities</link>

		<dc:creator>William Bridgers</dc:creator>

		<pubDate>Fri, 14 Jun 2013 01:05:49 +0000</pubDate>

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		<description><![CDATA[A &quot;single-premium immediate annuity (SPIA)&quot; is an annuity.&#160; That is to say, an annuity&#160;is defined as&#160;an income stream that continues until the annuitant dies when a person pays a lump sum of money (single premium) to an insurance company in exchange for that income stream (annuity).&#160;&#160; So, the term &quot;single-premium immediate annuity&quot; is a bit redundant.&#160; Think of it as taking retirement money from a privately funded pension, except that, in this case, you are funding it with a one-time, lump-sum of money.The important thing to remember is that once you pay the single premium, that money is essentially &quot;gone&quot;.&#160; You have just &quot;purchased&quot; an income that you cannot outlive.There are all sorts of ways to design the annuity (stream of income).&#160; You can get a monthly check, quarterly check, annual check - just about any payment schedule you can think of.&#160; You can also have the annuity pay out completely should you die before the original single premium you gave to the insurance company gets paid out.&#160; Should you choose that option, you will need to name a &quot;beneficiary&quot; to receive the remainder of the payout.Annuities, in general, are complex insurance contracts and space is not provided here to go into all the details.&#160; But, be absolutely certain that an annuity is right for you before you fork over the money because once it is committed to the contract, you either can&#039;t get a refund or there are stiff surrender penalties associated with backing out of the deal.&#160;&#160;Work only with an experienced insurance professional that has a solid working knowledge of what annuities are, how they work, and whether or not it is in your best interest to own one.&#160;&#160;More advanced&#160;knowledge about annuities can be obtained by consumer-friendly websites online.]]></description>

		

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