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 ?
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.
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.
This consideration takes the form of a required survivor joint annuity instead of the single-life annuity as the default payment option.
When Tom and Harriet meet with a retirement counselor, they learn that Tom will receive $2,000 per month as a single-life annuity payment, but only $1,800 per month if he and Harriet take the joint and survivor payment default.
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.
If you die soon after buying a standard, single-life annuity, your pension fund goes to the insurance firm, not your loved ones.
Cons: More expensive, so less income than with a single-life annuity.
singLe-Life Annuity Pension payments only paid to the holder during their life.