Payout Options for Fixed-Rate Annuities

If you are considering fixed-rate annuities as a way to increase your retirement income, you want to make sure that you understand the different payout options that you have. Here are some of the payout options for fixed-rate annuities.

Term

One option that you will have is to receive a fixed monthly payment for a certain amount of time. For example, you might be able to choose a 30-year term for which you will receive payments from the annuity.

Life

You could also choose to receive payments for the rest of your life. You could set up a contract based on your life as an individual or as a couple if you are married. If you are married, your monthly payment is going to be smaller because the insurance company has to guarantee the payment for the lives of two people instead of one.

Life with Guaranteed Term

You can also choose to get an annuity that will guarantee you payments for your life and for a certain amount of time for your beneficiaries. For example, if you died three years into your payments, your payments might continue for the next seven years to the beneficiary that you designate.

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