Explore: Immediate Annuity

Turn a Lump Sum into Guaranteed Lifetime Income

An Immediate Annuity—also known as a Single Premium Immediate Annuity (SPIA)—is an insurance product designed to provide guaranteed income payments that begin shortly after purchase, typically within 30 days to one year. It is ideal for individuals who are ready to convert a lump sum of savings into a predictable stream of income for life or a set period.

Unlike deferred annuities, Immediate Annuities do not have an accumulation phase. Instead, you exchange a lump sum with the insurance company in return for regular, guaranteed payments, making it a straightforward solution for creating retirement income.

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1. Income Begins Immediately
With an Immediate Annuity, you start receiving guaranteed payments right away, usually within a month of purchase. This makes it an excellent option for retirees who need income now.

2. Customizable Payment Options
You can choose from various payout structures, such as:

• Lifetime income (with or without survivor benefits)
   
• Income for a guaranteed period (e.g., 10 or 20 years)
   
• Joint-and-survivor income for couples
   

These options allow you to tailor the annuity to your income needs and legacy goals.

3. Guaranteed Payments
Once income begins, payments are fixed and predictable, regardless of market conditions. The amount is based on factors like your age, gender, lump sum amount, and selected payout option.

4. Longevity Protection
When set up for lifetime income, an Immediate Annuity ensures you won’t outlive your money—no matter how long you live.

5. No Market Risk
Because the payments are fixed, your income is not affected by stock market fluctuations, providing peace of mind during retirement.

You make a one-time premium payment to purchase the annuity. The insurance company then calculates your payment amount based on:

• The amount of your lump sum
   
• Your age (and the age of a joint annuitant, if applicable)
   
• Gender (used in actuarial calculations)
   
• The selected payout option and guarantee period
   

Payments can be made monthly, quarterly, semiannually, or annually, and once established, they do not change (unless adjusted by an inflation rider, if available).

Immediate Annuities may be suitable for individuals who:

• Are approaching or in retirement and need income right away
   
• Have a lump sum to convert into predictable cash flow
   
• Want guaranteed lifetime income or income for a specific time period
   
• Prefer to avoid market risk and investment management
   

They may not be ideal for individuals who need liquidity, want to leave the full principal to heirs, or are seeking growth-oriented investment opportunities.

• Immediate Annuities are insurance products, not investment vehicles.
   
• Payments are guaranteed by the issuing insurance company, based on its financial strength and claims-paying ability.
   
• Once an Immediate Annuity is purchased and income begins, you cannot withdraw or change the contract in most cases.
   
• Some payout options may not return the full premium to your estate or beneficiaries.
   
• Riders (such as inflation protection or period certain guarantees) may be available at additional cost and may reduce the base payment amount.
   

Review the annuity contract and disclosure documents carefully. Speak with a licensed insurance professional to determine if an Immediate Annuity aligns with your retirement income needs and financial goals.

To learn more or explore Immediate Annuity options, we invite you to:

• Estimate your guaranteed income payout using our Explore & Enroll Platform
   
• Speak with a licensed advisor for a personalized income analysis
   
• Request and download our retirement income planning guide to better understand how annuities fit into your strategy

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