What you need to know about Single Premium Immediate Annuities

The Annuity Man

Single Premium Immediate Annuities (SPIAs) were originally introduced in the Roman Times to provide a lifetime income stream for the dutiful Roman soldiers and their families.  The Latin word "annua" means payment, and is where the word "annuity" comes from.

Single Premium Immediate Annuity (SPIA) payments are primarily priced on your life expectancy at the time you start the payments.  Interest rates play a secondary role.  If you structure your SPIA "Joint Life", then 2 lives will be covered for lifetime income and those payments will be priced on both life expectancies.

SPIAs are transfer or risk strategies to provide a lifetime income stream.  Annuities are the only product category to guarantee an income stream regardless of how long you live.  In other words, there's no ROI (Return on Investment) calculation until you die.  Up to the point of your death, Single Premium Immediate Annuities (SPIAs) are a pure transfer of risk.

SPIAs, like all annuity types, are commodities that should be shopped with all carriers to find the highest contractual guarantee possible for your specific situation.  SPIA quotes are like a gallon of milk, meaning that they expire every 7 to 10 days unless locked in during the application process.  The SPIA marketplace is very competitive, with carriers aggressively bidding to win your business.

You can contact Stan The Annuity Man if you have any questions or want to see specific Single Premium Immediate Annuity quotes or other annuity type quotes for your specific situation...or to view a live feed of the best MYGA fixed rates for your state of residence.


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