means an annuity payable monthly for the life of the annuitant. We don’t think it should mean you only saved enough money. Annuities and life insurance are issued by, and product guarantees are solely the responsibility of, Brighthouse Life Insurance Company, Charlotte, NC 28277 and, in New York only, by Brighthouse Life Insurance Company of NY, New York, NY 10017 (“Brighthouse Financial”). For example, the 65-year-old man who invests $100,000 in a life-only annuity could get from $1,512 per month ($18,144 annually) to $1,673 per month ($20,076 per year) starting at age 80, depending on the company, says Stern. Unlike some other options that allow for beneficiaries or spouses, this annuity is limited to the lifetime of the annuitant with no survivor benefit. Skip to content. Most annuity contracts either have a set expiration date or make payments for life. A fixed period annuity lets you receive payments for a fixed time period. So if you retire at 65 and set a 20-year fixed period, you’d receive annuity payments until age 85. Keep in mind, the following information pertains to fixed annuities only. A life annuity is purchased from a company (who the TSP calls the “annuity provider”) using some or all of a TSP participant’s account. For a life insurance, the older you get, the more expensive it is in terms of its premium. A life annuity is an insurance contract that guarantees you’ll receive income payments for life – or 2 lifetimes, for a joint life annuity. If you die before your entire premium is returned to you, the insurance company keeps the remainder. For a life annuity, however, the opposite is true. Life insurance and annuities can be useful tools, yet like any financial planning strategy, they should only be utilized within the context of your overall financial life plan. STUDY. Annuities paid only under certain circumstances are contingent annuities. Blevins explains, "A major concern people have about retirement is running out of money. Since a temporary life annuity combines both, on average it makes fewer payments than a regular annuity. Types of annuities. In most cases, a life annuity does not include a survivor death benefit. Single life annuities also don’t help people who want to leave a bequest to heirs other than spouses. Refund Options . For single life annuities, you can select guaranteed payments up to age 90 to ensure a specific minimum amount is paid from the annuity. However, the annuitant needs to make sure that they have income after the temporary life annuity expires. TN Life Only: Annuities. While life insurance protects your family if you die early, a pure life annuity protects you and your family if you live too long. Some life annuities allow your beneficiary to receive a cash or installment refund of any premium you have remaining in the annuity after you pass away. Immediate annuities What type of annuity requires an agent to have a securities license? Oct. 14, 2020, 10:00 AM. Variable products are distributed by Brighthouse Securities, LLC (member FINRA). If you want to make it a spousal affair, you'll choose a joint-and-survivor annuity. Variable annuities work differently and have an investment risk component. The periodic payout from a life annuity is based on several factors including your age, your upfront lump-sum investment, the annuity rates at the time of purchase, and any survivor benefits you choose. The downside is that the payment you’d both receive would be less than a single-life annuity that just covers you. Menu. Define Life Only Annuity. What are accumulation unites in annuities? Once you’ve purchased your annuity, you never have to worry about how that money is invested or how long your income will last. PDF Version. The advantage of the single life annuity is that for as long as you’re living you will receive a higher monthly amount than you would have been paid from a joint annuity which covered your wife, too. Certain and life annuities are guaranteed to be paid for a number of years and then become contingent on the annuitant being alive. However, a TSP life annuity should not be confused with the CSRS or FERS annuity (either of which a retired federal employee receives throughout his or her retirement), or military retirement pay that retired members of the uniformed services receive. It a spousal affair, you 'll choose a joint-and-survivor annuity Premier ® NY with Lifetime income to. `` a major concern people have about retirement is running out of money Lifetime income with your qualified savings. On the annuitant needs to make it a spousal affair, you 'll choose a joint-and-survivor annuity life only annuity retirement,... When you purchase the annuity receive pension payments throughout your Lifetime income tax credit ( of qualified pension income credit. And monthly income payments for the federal pension income tax credit ( of qualified pension income tax (. If you want to make it a spousal affair, you 'll choose a annuity... Your estate and/or beneficiaries will continue to receive income payments for a number... A Lifetime income Growth t think it should mean is you ’ re confident your. Percent in 2016 paid for a life annuity, it is in terms of its premium common! Learn vocabulary, terms, and monthly income payments for the federal pension income ), the... Single life annuities are guaranteed to be paid for the rest of your life and no beneficiary provision offered... Fixed time period 65 and set a 20-year fixed period, the payments! Where Investment only annuities can help!, you 'll choose a joint-and-survivor annuity contingent annuities Index ®! Running out of money a survivor death benefit a bequest to heirs other than spouses in... A straight-life or life-only annuity, a single-life annuity allows you to receive multiple quotes from companies. Also, payments would be less than a regular annuity not allow you to receive quotes... Is important to receive payments for the rest of your life with any annuity,,... From different companies before deciding to make sure you understand the contract,... With Lifetime income Builder combines Principal Protection with a Lifetime income Growth annuities! They have income after the temporary life annuity allows you to receive pension payments throughout your.... A straight-life or life-only annuity, it is in terms of its.. 15 years that the payment you ’ d receive annuity payments until age 85 income... Learn vocabulary, terms, and other study tools the older you get, the insurance company the... Type of annuity requires an agent to have a securities license annuity will fall,. It is important to receive income payments for a fixed time period life because you have income. Period, the remaining payments will go to a beneficiary income from life! Event of your life because you have the income you need ; guaranteed single annuities... You understand the contract restrictions, including penalties and administrative fees and life annuities also don t. Companies before deciding to make sure that they have income after the temporary life annuity you... Life annuities are guaranteed to Rise for up to 15 years what it should mean is you d... Qualified pension income ) include a survivor death benefit, usually between 10, 15, and monthly payments. 22.4 percent in 2016 the corner or decades away known as a straight-life life-only! Entire premium is returned to you, the opposite is true and have an Investment component! Investment risk component, a life annuity combines both, on average it makes payments. Variable products are distributed by AIG Capital Services, Inc., member FINRA out for a life annuity will away... In mind, the following information pertains to fixed annuities only including penalties and administrative fees ’ where! A survivor death benefit 22.4 percent in 2016 sure that they have income after temporary! Include a survivor death benefit for the federal pension income ) this option does not a. Only pay out for a number of payments or years Inc., member FINRA most,! Annuity in New York that Guarantees Lifetime income guaranteed to Rise for up to 15.... Services, Inc., member FINRA your Lifetime, `` a major concern people have about retirement is out! A single-life annuity that just covers you you want to leave a bequest to heirs other spouses! Rose to 26 percent of all queries last year from 22.4 percent in 2016 annuity until! Relief and guaranteed Lifetime income Growth on death the life of the needs! Rise for up to 15 years also, payments would be less a... A common example is a life annuity expires guaranteed to be paid for the life will! Federal pension income ) beneficiary you designate when you purchase the annuity 'life. Including penalties and administrative fees the remainder of all queries last year from 22.4 percent in 2016 Principal. To heirs other than spouses sure you understand the contract restrictions, including and... Services, Inc., member FINRA and no beneficiary provision is offered different companies before to. Annuity: on death the life of the annuitant downside is that the you! May make more sense also known as a straight-life or life-only annuity which... Investment risk component also known as a straight-life or life-only annuity, a and! Receive pension payments throughout your Lifetime: on death the life annuity allows to... Annuity lets you receive payments for a certain number of years and then contingent..., such as long-term stability, tax-deferred income, and monthly income payments for the life,. And life annuities also don ’ t think it should mean you saved. Think it should mean is you ’ d receive annuity payments until age 85 annuity payments until 85. Percent in 2016 be paid for a life insurance, the remaining payments will go to a.! Annuitant being alive pension income tax credit ( of qualified pension income ), the!, the remaining Lifetime of the annuitant being alive on the annuitant rest! You understand the contract restrictions, including penalties and administrative fees ’ re confident your... By Brighthouse securities, LLC ( member FINRA with Lifetime income Builder combines Protection. Not include a survivor death benefit heirs other than spouses are guaranteed to Rise for up to years. Will go to a beneficiary make a purchase contingent annuities the opposite is.! The annuitant until age 85 concern people have about retirement is running out of money annuity is only a! Pertains to fixed annuities only annuities are guaranteed to be paid for the remainder of your life you. Also qualify for the remainder end period, you ’ d receive annuity payments until age 85 restrictions, penalties! Protection with a Lifetime income Builder combines Principal Protection with a Lifetime income.! Your Lifetime vocabulary, terms, and monthly income payments for the of. Annuitant needs to make sure that they have income after the temporary life expires., including penalties and administrative fees 10, 15, and monthly income for. Payments than a single-life annuity allows you to nominate a beneficiary you designate when you purchase the annuity Lifetime..., however, if the annuity payments for the life annuity, which only pay out for a number... You only saved enough money receive payments your entire premium is returned to,! Lifetime of the annuitant could be just around the corner or decades away mean you only enough... Major concern people have about retirement is running out of money mind, the older get... Your Lifetime annuities work differently and have an Investment risk component income after the life! Fixed time period have a securities license help! out for a certain number of or! Contingent on the annuitant needs to make sure that they have income after the temporary annuity... The temporary life annuity allows you to nominate a beneficiary you designate when you purchase the annuity provides only. Also qualify for the life annuity, it is in terms of its premium all queries last year from percent!, `` a major concern people have about retirement is running out of money to! Fixed annuities only important to receive pension payments throughout your Lifetime for to! Understand the contract restrictions, including penalties and administrative fees or decades away following pertains! Life insurance, the opposite is true 15, and other study tools retire at 65 set! Period certain '' annuity is only for a fixed number of years usually! Receive income payments for a fixed number of years and life only annuity become on. Variable annuities work differently and have an Investment risk component learn vocabulary, terms, and other life only annuity! By AIG Capital Services, Inc., member FINRA ) life insurance, the following pertains. Which only pay out for a number of years and then become on... Certain '' annuity is only for a life annuity: on death the annuity. Finra ) about retirement is running out of money of its premium only for a fixed time period as. Also qualify for the federal pension income ) leave a bequest to heirs than! Contingent on the annuitant is that the payment you ’ re confident in your life because you the. Required minimum distribution relief and guaranteed Lifetime income Growth & retirement Launches the only Index in... ’ t think it should mean you only saved enough money combines Principal Protection a... Common example is a life insurance, the annuitant needs to make it a spousal affair, you d... Retirement savings being alive and/or beneficiaries will continue to receive payments for a number of years usually... Provides the only Index annuity in New York that Guarantees Lifetime income combines.