Life Income Annuity With Refund Option
Manulife principal protected annuity.
Life income annuity with refund option. Annuities are used to guarantee a constant stream of income over a specified period of time. For the rest of her life linda will receive 15 000 annually from the prudential insurance company of america. Depending on the annuity features the payments will either continue such as in a life annuity or stop. Example of a cash refund annuity here is a quote from manulife s principal protection this option also known as a cash refund guarantee.
Life income with refund the annuity will pay over the owner s lifetime. Most new york life income annuities offer some form of death benefit. Life income with refund guarantee option payments are made for as long as the annuitant is alive. Life annuities can be thought of as longevity insurance and in many ways they re the opposite of a life insurance policy.
When the annuitant dies payments cease. Life refund annuities may have fixed periodic payments until the amount paid out is equal to the amount the beneficiary would have received with a lump sum settlement option. Income annuity payments may be monthly quarterly semi annually or annually. Joint and survivor joint and survivor annuities provide fixed periodic payments for as long as either of two beneficiaries is alive with payment ending when the surviving beneficiary dies.
However if the owner should die before receiving an amount equal to the payments made into the annuity a beneficiary will receive the balance. Joint annuity male and female aged 65 100 000 of registered funds with a cash refund option. If a cash refund option is chosen the designated beneficiary of an. At age 65 linda is retiring and seeking immediate income.
Life annuities no refund also called straight life annuity pays a life income for as long as the annuitant is alive. If the annuitant dies before payments equal to all or a specified portion of the purchase price have been received the beneficiary receives the balance of the payments up to the refund guarantee amount. If you die before your income payments equal the full amount of your annuity purchase price your beneficiary will be paid the difference. Unfortunately because of the insurance company s guarantee to pay for at least the minimum specified period of time the annuity s monthly payout to you will be lower than it would be with a life income option.
Many income annuities offer a death benefit. This settlement option pays the highest amount of monthly income due to its lack of refund options and is therefore suitable for people who are either single and need a maximum income or have dependents that they have already provided for.