Life annuities provide you with a regular income paid at selected intervals for the rest of your life, regardless of what age you live to. Payments can be monthly, quarterly, semi-annually or annual. The payment amounts can be level for the remainder of your life or can be indexed at a pre-selected rate. It is possible to lock-in a ’guaranteed period’ which would guard against loss of assets in the event of early death. Several factors, including current interest rates, are considered when an annuity income is calculated, and as a result, once you buy a life annuity you are locking this interest rate in for the entire payment period. Life annuities can be paid with registered or non-registered funds.
- Single Life Annuities. These will pay you an income at the selected intervals for as long as you live. The income will cease at your death.
- Joint Life Annuities. This type of annuity will pay income to you and your spouse – for life. The income payments will stop at the second death.
- Guarantees. Although all life annuities will pay an income to you for the remainder of your life, this income will cease at your (or the joint annuitants) death. In order to protect you against a substantial loss in the event you purchase an annuity and die within a short period of time, you can add a minimum guarantee to the payment period. This can usually be 5, 10, 15, or 20 years or until a specific age. The maximum guarantee period however cannot exceed your age of 90.
Rothenberg & Rothenberg deals with almost every insurance company in the country. This allows us to shop the market to find you the most competitive annuity quote tailored to your specific needs. Click here for latest annuity quotes.