Annuities - Income Options

You can choose from a number of options for receiving income from an annuity. Below you can read about some options with guarantees.

Options With Guarantees

Some annuity options with guarantees available to you are:

• Lifetime Income for You -- You can opt for income, guaranteed by the insurance company, for the rest of your life. Payments cease upon your death.
• Lifetime Income with a Guaranteed Period -- You will receive income for life. If you die before the guarantee period is over, your beneficiaries will receive the remaining number of guaranteed payments.
• Lifetime Income for Two -- You can opt for income guaranteed for the rest of your life and the life of another person, such as your spouse. Guaranteed income for two people is known as a joint and survivor option, which guarantees that income payments will continue for the life of the primary owner and a second person. The guarantee is made by the insurance company issuing the annuity.

There are many other options which can be explained to you by a financial advisor or insurance representative. These options can usually be mixed and matched to provide an ideal income plan for your needs. For example, say you and your spouse retire at age 65 with 10 years left on your mortgage. You could choose the option to have income for two people with a 10 year guaranteed period, so that if you both die before the guarantee expires, the payments would continue until the end of the 10 year period to pay the mortgage for your beneficiaries. These guarantees are subject to the claims paying ability of the issuer.