What Is the Single Life Annuity?
If you want to receive annuity benefits when you retire, you have to consider earlier on what you want to do with the money. Do you want to share the benefit or the income with your spouse or do you wish to receive a single life annuity? The single life annuity is also known as a solo coverage. With the single life annuity, the monthly payouts tend to be higher compared to joint annuity since the expected time of payment is longer. Of course, selecting a single life annuity is not for everybody. You have to consider different options and variables. For example, you have limited savings that you have saved on your retirement, if you want to give protection to your spouse, you can opt for a joint plan especially if you do not have a conventional life insurance plan that can protect your partner or your kids from sudden losses. That being said, with the single life annuity, you can benefit from higher payouts but only if you believe that you can last a pretty long time to break even with your initial investment.
Choosing between a single life annuity and joint plan can be complicated since you want to make sure that you decide very well since once you have signed that contract, that is for good, unless you are willing to pay a hefty fine.
With the single life annuity, there are numerous options that you can consider one of the options is single life annuity only without refunds in which the payments are received during the course of the annuitant’s life and it ceases upon his or her death. Another option would be single life annuity with 5 years certain. Here, there is still level payment but if the annuitant dies before the end of 5 years, then the payments will go to a certain beneficiary till th3 5 year time period. This particular single life annuity can also be stretched to 10 years, 15 years and 20 years but of course, the amount necessary to get the single life annuity will be a lot higher. You can also opt for the single life annuity with an installment refund. Here, the payments are still paid throughout the life of the annuitant but if the annuitant dies before getting the amount that is equal to the original premium, then the period payments will continue getting paid to a beneficiary till the total payment has been made or if it reached the total amount of payments expected which is also equal to the cost of the original premium. Finally, we have single life annuity with a cash refund product. In this situation aside from standard monthly income, if you die before getting the amount equal to your original premium, the difference between your premium and the total amount of payments received will then be distributed as a lump sum amount to the beneficiary.
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