What Are SPIA Annuities?

  1. 165 POINTS
    Shane Burt
    President/Senior Insurance Exec., Mid-American Insurance Associates, Olathe, KS
    SPIA stands for single premium immediate annuity. Which means, you receive a set amount of money on a regular basis, on an annuity you purchased with a single deposited premium. SPIA's can be very practical, and especially beneficial for specific situations, including: retirement, terminal funding, pension terminations, and retired life buyouts. As well as individuals who have received a lump sum of money from a structured settlement of sorts, like: injury, divorce, or inheritance. The purpose of investing your money in an immediate annuity, is to have a steady income for the rest of your life; by prolonging the principal without the risk of fluctuations in the financial markets. Plus there can be significant tax advantages, depending on the funding of the premium and the amount of income payments you elected to regularly receive. 

    Answered on May 28, 2013
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    David RacichPRO
    Fountain Hills, Arizona
    Single premium immediate annuities can be paid over lifetime income you can’t outlive. The older the annuitant is the higher the mortality credit assigned to the annuity and in tandem with the credited interest rate can actually perform well even in a low interest rate environment were experiencing 
     
     
    Answered on May 29, 2013
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