ANNUITIES
Income Annuities
Income annuities are designed to convert a premium into a stream of payments. Income may start soon after purchase or at a future date depending on the contract.
How Income Annuities Work
Payment options can be structured for a single life, two lives or a defined period, and may include different guarantees. In exchange for the income guarantee, access to the original premium can be limited.
What to Consider Before You Choose
- Decide whether the goal is immediate income or income beginning later.
- Compare lifetime income with period-certain and survivor options.
- Understand what happens to remaining value at death under the selected payout option.
- Consider how much liquidity you need outside the annuity.
Who Often Considers Income Annuities
Income annuities can fit retirees who want to convert a portion of savings into a predictable stream of payments and are comfortable trading some liquidity for that guarantee.