What Does Life Annuity With Period Certain Mean?
Introduction
In this section, Stan The Annuity Man introduces himself and explains what an immediate annuity life with a period certain is.
- Stan The Annuity Man is named after a baseball player but played basketball.
- Immediate annuities provide lifetime income transfer of risk.
- Life with a period certain means there's a guaranteed attached so that if you die early in the contract, then there's going to be some form of payments going to somebody in your family.
Life Annuities with Period Certain
In this section, Stan The Annuity Man explains what life annuities with periods certain are and how they work.
- Life annuity means it's going to pay you for the rest of your life regardless of how long you live.
- A period certain is added as a backstop. It guarantees that if you die early in the contract, then there will be some form of payments going to somebody in your family.
- Examples:
- Life with 5-year certain: pays for the rest of your life but if you die before 5 years, there will be 2 more years of payments. If you live past 5 years, there are no more payments left for beneficiaries.
- Life with 10-year certain: pays for the rest of your life but if you die before 10 years, there will be more years of payments. If you live past 10 years, there are no more payments left for beneficiaries.
- Life with 20-year certain: pays for the rest of your life but if you die before 20 years, there will be more years of payments. If you live past 20 years, there are no more payments left for beneficiaries.
Life With Installment Refund
In this section, Stan The Annuity Man explains what life with installment refund is and how it works.
- Life with installment refund is a period certain but based on your life expectancy to the day.
- It guarantees that 100% of the money that you don't use goes to the list of beneficiaries.
- It's as close to having your cake and eating it too in the annuity industry.
Life with Period Certain Income Annuities
In this section, the speaker discusses how life with period certain income annuities can be used in different account structures and explains which type of payment structure pays the highest.
Life with Period Certain Income Annuities
- Life with 5-year is the highest contractual payout because it has the least amount of backstop.
- Life with installment refund means that instead of it being a 20-year period certain, it's life with a 14 year, 8 month and 3 day period certain.
- The vast majority of people that buy lifetime income annuities do not buy life only because they want to make sure that there's some guarantee for their beneficiaries if they die early in the policy.
- Annuity quotes are customized and all carriers will be quoted if you said, "I want a life with an 11-year period certain." We can do that. Whatever that means to you. If that's how you want to structure it.
Single Premium Immediate Annuity Owner's Manual
In this section, the speaker talks about his book on single premium immediate annuity owner's manual and encourages viewers to visit his website for more information.
Single Premium Immediate Annuity Owner's Manual
- The speaker encourages viewers to go to his website to get a free quote without any obligation or cost. He also offers books and podcasts on his website.