A contract purchased from insurance company at retirement to provide continual income over a period of time?

Question

A contract purchased from insurance company at retirement to provide continual income over a period of time?

Answer 1

Annuity? But you don't have to do it "at retirement".

Answer 2

That is called an immediate annuity plan.  You give them an initial investment, then they pay it back with interest for a specified period of time (also known as a period certain) or for the lifetime of the insured.

It is important to pick a well rated carrier offering strong internal returns on the policy.  You can learn more by reading an article at our website:

http://www.ohioinsureplan.com/index.php/...

and also here:

http://www.ohioinsureplan.com/index.php/...

Answer 3

How about immediate annuity? The most common being a single premium immediate annuity (SPIA).

Answer 4

If the income is going to start immediately, you would purchase a SPIA (Single Premium Immediate Anniuty), then a payout option has to be chosen.

Do NOT take the life income only. If the annuitant dies, even one month later, the insurance company's obligation is over. Take, instead, a life and 10-year, 15 year, or 20-year certain. This option obligates the insurance company to pay the annuitant for life, or the beneficiary for a minimum of 10, 15, or 20 years, if the annuitant dies prior to the length of time chosen.

If the annuitant lives to the time chosen, and then dies, the insurance company's obligation is over.