Single life annuity

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Single life annuity

An annuity covering one person. A straight life annuity provides payments until death, while a life annuity with a guaranteed period provides payments until death or continues payments to a beneficiary for a guaranteed term, such as ten years.

Single Life Annuity

An annuity that only provides payments to one person. That is, payments cease when the annuitant dies. This contrasts with other annuities that make a lump sum payment to the annuitant's survivors, or continue payments to them for a certain number of years.
References in periodicals archive ?
Some of the most common options are: lump sum, single-life annuity, 100% joint survivor, 50% joint survivor and/or options with pop-up provisions.
Here's an example we encountered: The single-life annuity income option offered $3,000 per month to the retiree, while the 100 percent joint-and-survivor option offered $2,400 per month.
As well as not getting the best pension income, one of the biggest mistakes many people make is to opt for a single-life annuity, which means the pension stops immediately upon their death, leaving loved ones without an income.
Consider things such as the risk of leaving loved ones struggling if you opt for a single-life annuity that stops upon the death of the holder, compared to receiving a slightly lower income with a joint-life that continues to pay out.
With a single-life annuity, for instance, "you feel like a loser from the day you bought it.
Traditional defined benefit plans also offer a period-certain option--sometimes called a period-certain and continuous option--which is similar to a single-life annuity in that it guarantees the employee a monthly benefit for life.
A 60-year-old man buying a single-life annuity from Standard Life with a pounds 100,000 fund would get a pounds 7,584 a year pension.
Typically, retirees choose a single-life annuity, which is normally the form of payment that yields the highest payable benefit.
A single-life annuity, with part of the increased benefit used to purchase life insurance, may significantly increase retirement income while still protecting the spouse.
For instance, you may find that a 20 year guarantee period for a single-life annuity for a 55-year-old might only reduce income annuity payments by about 3 percent.
The use of a single-life annuity, rather than a joint-and-survivor annuity, proved helpful in these scenarios because it allowed the couples to take advantage of higher payout rates (a single-life annuity will typically pay out more than a joint-and-survivor annuity, which must consider the risk of longevity for two lives).
If you die soon after buying a standard, single-life annuity, your pension fund goes to the insurance firm, not your loved ones.