Options for Annuities

Life Only Annuity

This annuity is payable for as long as you live.

In the event of your death, payments will cease.

Life Annuity
Guaranteed Five Years

This annuity is payable monthly for as long as you live.

If you die less than five years after your retirement date, your beneficiary will receive the balance of the five years' payments.

Life Annuity
Guaranteed 10 Years

This annuity is payable monthly for as long as you live.

If you die less than 10 years after your retirement date, your beneficiary will receive the balance of the 10 years’ payments.

Life Annuity
Guaranteed 15 Years

This annuity is payable monthly for as long as you live.

If you die less than 15 years after your retirement date, your beneficiary will receive the balance of the 15 years’ payments.

Joint and Survivor Annuity
Reducing to 50%

This annuity is payable monthly for as long as you live.

After your death, your spouse/partner will receive monthly payments equal to 50% of your monthly payment for as long as he/she lives.

Joint and Survivor Annuity
Reducing to 60%

This annuity is payable monthly for as long as you live.

After your death, your spouse/partner will receive monthly payments equal to 60% of your monthly payment for as long as he/she lives.

Joint and Survivor Annuity
Reducing to 75%

This annuity is payable monthly for as long as you live.

After your death, your spouse/partner will receive monthly payments equal to 75% of your monthly payment for as long as he/she lives.

Joint and Survivor Annuity
Not Reducing

This annuity is payable monthly for as long as you live.

After your death, your spouse/partner will receive monthly payments equal to your monthly payment for as long as he/she lives.

Joint and Survivor Annuity
Reducing to 60% and Guaranteed 10 Years

This annuity is payable monthly for as long as you live. After your death, your spouse/partner will receive monthly payments equal to 60% of your monthly payment for as long as he/she lives.

If you and your spouse/partner die within ten years, before the end of the guarantee period, the remaining payments would go to another beneficiary or the estate.

 

All of the above options have a cost. Each option you add will reduce the monthly payment received.

Life Annuity Rates Example

The following table shows estimates for monthly income, based on a $100,000 premium with a 10-year guarantee.

Age

60

70

80

Male

$412

$534

$715

Female

$371

$484

$664


Rates also vary between institutions and by degree depending on age. A 75-year-old man may encounter a wider range of quoted rates than a 60-year-old.

Rates can, and do, change weekly. Get quotes from multiple institutions and compare them.

The following table gives an indication of the reduction in monthly income for a 70-year-old male as more options are added.

Option

Income

Life Annuity
5-Year Guarantee

$613

Life Annuity
10-Year Guarantee

$589

Joint and Survivor
Level Annuity

$486

Indexed Life Annuity

$515