In speaking to a few agents, you have an option for a beneficiary payout if I pass away, so I’m confused when most folks say I’m out the Investment as is my heirs.
You should read at least a little bit about SPIAs.
There are a few "extras" available on most policies.
Those include:
- arranging for a second anniutant (with a range of percentages to the survivor);
- a "guarantee" period, so that IF the annuitiant croaks almost right away, there is some money left for the remaining period (e.g., up to 10 years);
- a money back if annuitant passes before the annuity payments have at least matched the cost of the SPIA.
Note that these "extras" will mean that the monthly/annual payments will be somewhat less than if it were a more simple SPIA with a single annuitant and payments that end with the passing of that annuitant.
Read the description of the policy, keeping in mind things lke the above.
ETA: Many people just get the basic "payments for life", as that's the point of an SPIA for them.
We'll do that, but we'll have two annuitants. We have yet to decide if we'll have the survivor get the same as they got together (living expenses do not get cut in half, etc.), or perhaps something like 75%. Some of that will depend upon what we have that is not annuitized at the time we make that decision.
We don't have any significant legacy plans/needs, and there will still be some money left (we assume!) from the non-annuitized portion anyway.
RM
Statistics: Posted by ResearchMed — Fri Dec 15, 2023 11:13 pm