Lifetime Payout Annuity

Filed Under » ,
Dictionary Says

Definition of 'Lifetime Payout Annuity'

A type of insurance product that pays out a portion of the underlying portfolio of assets over the life of the investor. A lifetime payout annuity can provide fixed or variable payments. In a fixed payout scheme, the investor receives a fixed dollar amount for each payment, potentially with cost of living adjustments (COLA). Payouts under a variable payout scheme will fluctuate because payments are based on the value of the investments held in the annuity's portfolio.
Investopedia Says

Investopedia explains 'Lifetime Payout Annuity'

Investors may choose a lifetime payout annuity to head off the risk of outliving the amount of money set aside for retirement. Basically, the guaranteed payments for life reduce a person's longevity risk. However, this payout scheme can cause problems for those wanting to leave estates to heirs. Payouts from a lifetime payout annuity typically end with the death of the policyholder. The policyholder can purchase adjustments which allow payments to continue to an estate or which allow for a guaranteed number of payments, but these can result in a different payout.
Search results for

'Lifetime Payout Annuity'

  • Immediate Annuities: Guaranteed Payout At A Price?

    http://www.investopedia.com/articles/retirement/08/immediate-annuity.asp
    ... Therefore, except for the healthiest and most optimistic people, it usually
    does not pay to buy a lifetime payout annuity after age 75. ...

  • Variable Annuity Benefits: What The Fine Print Won't Tell You

    http://www.investopedia.com/articles/retirement/07/annuity-benefits-fine-print.asp
    ... Yet, for people who experience poor health during retirement, a lifetime payout
    may not be attractive. ... Today's immediate annuity industry is highly competitive ...

  • Should Your 401(k) Be In An Annuity?

    http://www.investopedia.com/articles/retirement/10/401k-annuity.asp
    ... the general insurance protection in the contract, such as the guaranteed lifetime
    payout provided the retiree annuitizes the contract. Annuity contracts also ...

  • Lifetime Income Annuities: The Instant Pension Plan

    http://www.investopedia.com/articles/retirement/09/income-annuities-pension-plan.asp
    ... greatest financial fear, the lifetime income annuity may be ... How It Works Lifetime
    annuities, also known as ... of money in exchange for a guaranteed payout for life ...

  • Series 26 Study Guide - Variable Contracts - Types of Annuity ...

    http://www.investopedia.com/exam-guide/series-26/variable-contracts/annuity-payouts.asp
    ... indefinite period, such as lifetime or the lifetime of the client and his or her
    spouse or other beneficiary. During the payout phase, the annuity contract may ...

  • How To Insure Your Most Important Asset - Yourself

    http://www.investopedia.com/articles/insurance/11/insure-your-greatest-asset.asp
    ... A financial product known as a lifetime payout annuity can completely hedge the
    risk of running out of money in retirement by paying you a payment (annuity ...

  • Series 6 Study Guide - Variable Contracts - Types of Annuity ...

    http://www.investopedia.com/exam-guide/finra-series-6/variable-contracts/types-annuity-payouts.asp
    ... or for an indefinite period, such as the lifetime of the client and his or her spouse
    or other beneficiary. During the payout phase, the annuity contract may ...

  • Live Longer, Retire Younger: Can You Do It?

    http://www.investopedia.com/articles/retirement/07/insureretirement.asp
    ... predecease her. What could he do? Frank could use a fixed, deferred payout
    annuity with a joint lifetime benefit. By investing $140,000 ...

  • The Cost Of Variable Annuity Guarantees

    http://www.investopedia.com/articles/pf/06/variableannuity.asp
    ... a minimum amount throughout your lifetime - regardless of ... 6%. It's possible that
    your payout can rise ... take withdrawals from your variable annuity, this option ...

  • Deciphering Deferred Annuity Designations

    http://www.investopedia.com/articles/pf/06/ownerannuitant.asp
    ... an annuity, ask the annuity company to calculate the payments you could receive
    under several different systematic payout options, such as lifetime, 20-year ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links