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Home Immediate annuities Annuity Income Payments
Annuity Income Payments


With the increasing popularity of annuities more and more people are investing their funds in annuity contracts. Annuities are excellent tools to accumulate funds for retirement purposes. In simple words annuity is a contract between annuitant (investor) and an insurance company (issuer). Annuitant makes either single payment or series of payments to insurance company for purchasing annuity product. Insurance company repaid the annuity fund to annuitant in lump sum or via periodic income payments, as selected by an annuitant.

In this article you will find some information about annuity payments options attached with different type of annuities. Usually the mode of annuity payments is selected by annuitant. It may be yearly, semi annual, quarterly or monthly. Ordinary annuities and annuity due are two common types of annuity payments. Ordinary annuity payments are made at the end of each period till the maturity period. And when annuitant receives payment at beginning of each period, that is called annuity due payment.

Annuity payments also depend on nature of annuities. Qualified joint and survivor annuity offers life time income payments to annuitant and after annuitant’s death payments are made to his/her spouse. If annuitant receives income payments after a certain period of time, such payments are called annuity with certain period. Fixed annuities make assured income payments to annuitants. Payments in this case may change from time to time but are never less than the minimum guaranteed amount.

If an annuity payment prolongs after the death of the annuitant, it is called a life annuity payment and in case it continues over the annuitant’s life or for a fixed period (whichever is longer), it is life with period certain. Variable annuity payments fluctuate on the basis of performance of underlying investment options. Single life annuities provide life time income payments and after death of annuitant no funds are paid to heirs.

For more info on annuities, click here or call an Annuity Specialist at AnnuityForLife.com, 1-888-261-6237