One of the biggest challenges each of us face is making sure we will have enough money to meet financial needs throughout our lifetime.
A fixed annuity can provide a guaranteed stream of income that you can never outlive. Even if the period of income payments lasts 30 years or more, you are guaranteed to receive an ongoing stream of income for as long as you live.
A Growing Benefit
Guaranteed income for life can be an extremely valuable benefit. The reason is simple — Americans are living longer today than ever before. As this chart shows, average life expectancy has risen dramatically over the years, and may become even longer in the decades ahead.
| American Life Expectancies |
| Birth Year |
Life Expectancies |
| 1920 |
54.1 |
| 1921 |
62.9 |
| 1922 |
69.7 |
| 1923 |
73.7 |
| 2000* |
77.1 |
| 2010* |
78.5 |
*Projected actual statistics not yet available.
Source: U.S. Center for Health Statistics. |
How "Income for Life" Works
With a fixed annuity, you can annuitize your contract to generate a stream of income payments. There are a number of ways you can use a fixed annuity to help you meet your income needs. Here are some important facts to know:
- You can choose to have a stream of income to last throughout your lifetime or for a set number of years.
- Lifetime payments can be based on the life of one individual, or on joint lives (such as a husband and wife). This can provide security for a couple through both of their lives.
- Payments will be based on the value of the contract you purchase, your life expectancy at the time you annuitize the contract, and the interest rate assumed for the contract.
- The payouts you receive are usually fixed for life. This provides you with a reliable amount of income you can count on. However, the value of payments will not increase with the rising cost of living you may encounter over the years.
- Upon death (or upon the death of both recipients in a joint life payout), payments will discontinue, with no proceeds applying to your estate.
If you are seeking financial security for your life, take a closer look at the unique advantages that a guaranteed stream of income from a fixed annuity can provide.
