How Much Do Immediate Annuities Pay in 2021
What are Immediate Annuity Payouts Today?
To give you an idea of what a $100,000 immediate annuity would pay you per month I’ve created the tables below.
I’ve included the guaranteed monthly payment for single life payment option as well as joint life with cash refund payment option. There are many immediate annuity payment options available, too many to cover here.
If you would like, you may request a personalized immediate annuity quote here; we respond to all requests within 4 business hours.
60 Year Old Immediate Annuity Payments
|Annuitization Income Option at 60||Male||Female||Joint- Life|
|Life with Cash Refund||$367||$351||$338|
65 Year Old Immediate Annuity Payments
|Annuitization Income Option at 65||Male||Female||Joint-Life|
|Life with Cash Refund||$401||$382||$368|
The above numbers are the best immediate annuity payouts available from an A+ Rated Insurance Company at the time this was written.
When you purchase an immediate annuity you are essentially converting a lump sum into a series of guaranteed income payments and give up control of the asset.
Immediate Annuity Payment Options
There are different income annuity payout options available to you. We’ve already mentioned a couple of the options throughout this guide; below is a comprehensive list of all the income annuity payout options offered in an income annuity.
- Life Only: payments stop at death (or later of two deaths for joint).
- Joint Life Payment Option: payments stop at the latter of two deaths.
- Life with Cash Refund: optional on life only or joint-life only payout that will pay your beneficiaries the difference between the original purchase amount and the sum of all payments received upon insured’s death or death.
- Life with Period Certain: optional on life only or joint-life only payout that guarantees to make payments for at least a certain number of years. Payments will continue to beneficiaries if the insured passes away during this period of time.
- Period Certain Only: Will pay you monthly annuity payments for only a specific number of years; income is not guaranteed for life.
Are Immediate Annuities a Good Investment in 2021?
Due to the current interest rate environment, annuitization typically isn’t the first choice. Based on current pricing an index annuity with an income rider pays a higher guaranteed lifetime income.
Indexed annuities with an income rider also provide the annuity contract owner more flexibility your goals, needs or objectives change over time.
However, there are certain situations in which an immediate annuity makes sense and is a useful tool. Not an investment but a tool.
Reasons you should buy an Immediate Annuity
- When attempting to “Spend-down” for Medicaid Eligibility
- As an “income bridge” to cover living expenses in order to delay Social Security to age 70
- As an income source for a certain period to convert traditional IRA to a ROTH using “bracket-bumping method.”
- For “spendthrifts”
- Wealth Transfer Strategy
- Over “charitable” parents or grandparents
Get an Immediate Annuity Quote
Complete the form below and we will send you a personalized immediate annuity quote. We respond to all requests within 4 business hours. If you would like more immediate assistance we are available via phone and email at (855) 583-1104 or firstname.lastname@example.org.
You can also use one of our annuity calculators to run a quote immediately.