How To Get An Annuity That Pays Guaranteed Lifetime Income For The Rest Of Your Life

If you’re like most people, you understand that an immediate annuity is an insurance product that can provide income during retirement.

But you may not know how to get an annuity that pays income for the rest of your life. With so many annuities available, knowing which is right for you cannot be easy.

This article shows you how to buy an annuity that pays income for the rest of your life.

What Is A Lifetime Guaranteed Income Annuity?

A Guaranteed Lifetime Annuity is like your personal pension. Imagine giving a lump sum to an insurance company, and they pledge to give you regular payouts until you kick the bucket.

Knowing you’ll have a steady stream of income no matter how long you live is peace of mind. Consider it a safety net amidst market uncertainties.

Once you or your survivor passes, the insurer will provide any extra funds in your account balance to your identified beneficiaries. Some folks also add a death benefit, like life insurance, or include a long-term care benefits rider.

Payments could be monthly, quarterly, or yearly, with amounts increasing the older you are when starting. It’s almost like betting against your lifespan, but you’re guaranteed cash flow regardless of the outcome.

At the time of purchase, our fixed annuity experts will help you set up your fixed annuity income to provide a guaranteed lifetime income plan regardless of how long you live.

How Guaranteed Lifetime Income Annuities Work

A Guaranteed Lifetime Income Annuity is a financial agreement with an insurance company that provides a stream of guaranteed income for the rest of your life. Most retirees will transfer their risky retirement savings into a deferred annuity, such as their 401k or IRA.  

Once they reach the required monthly distribution age, they activate their annuity with a guaranteed lifetime income rider. The amount of your annuity purchase will determine how much the income annuity can provide annually.  

A single premium immediate annuity can help provide guaranteed income for life even if the contract amount hits zero. This is similar to working for a large city or county that provides a pension plan.

Top features of a guaranteed lifetime income annuity:

• Regular monthly income for life
• Never run out of your retirement savings
• Diversification of income sources
• Stability against market fluctuations

Benefits Of An Annuity That Pays Income Forever

If you are like most retirees, you are concerned about outliving your retirement savings. The rise in inflation or a correction in the stock market can be a genuine concern for retirees who have experienced multiple market corrections and lost half of their investment overnight. 

A fixed-income annuity that lasts forever can help reduce your financial anxiety and secure a source of income for life.

Here are the top 5 benefits of a forever income annuity:

• It provides a guaranteed income stream, significantly reducing the risk of outliving your savings.
• Predictably and dependable monthly payouts offer financial security and peace of mind.
• Adds a layer of protection against inflation, thanks to optional annual payment increase features.
• It allows you to diversify your income portfolio, thus safeguarding your retirement from potential market downturns.
• Delivers joint forever payout options for you and your spouse.

Steps To Get Income Annuities That Pay An Steady Income Stream For The Rest Of Your Life

Step 1: Decide what kind of annuity you want

As your fixed annuity experts, we work with our clients to secure a regular source of income they can depend on. Integrity Now Insurance Brokers is your safe money expert and focus on an income that provides guaranteed income for life.  

Here is how we help our clients:

• Understand your retirement needs. Budget your expected lifestyle costs and identify whether you need the maximum guaranteed income or can afford a lower payment to benefit your heirs.
• Set an income floor using fixed-income payments to meet everyday needs, offering you peace of mind.
• Consider your income sources. Social Security, VA pension and disability, and employer pensions may form a large part of your income.
• Explore how fixed and fixed index annuities can offer a never-ending income. 
• Examine the types of annuities: lifetime, fixed-term, enhanced, investment-linked, and long-term care annuities. The optimal choice depends on your health profile, risk appetite, and other retirement income.
• Age factor, pension pot size, retirement location, health, and lifespan while choosing the annuity duration, features, and type.

Step 2: Research and find a seller

Our annuity consultants will help you find the best annuity providers based on the information we gathered in Step 1. As independent annuity agents, we represent all available companies and negotiate the highest annuity rates.

Step 3: Fill out the paperwork

Integrity Now Insurance Brokers will help you complete the life annuity applications offering the best guaranteed rate of interest. This will ensure the highest monthly annuity payments based on the annuity plan.  

Step 4: Review the annuity contract with our financial advisers

An annuity is a contract made between the annuitant and an insurance company. Before signing the dotted line, our annuity agents will review the annuity contract with you to ensure its accuracy. 

Step 5: Consider the cost, safety, and other advantages

Getting an annuity to ensure lifetime income is a crucial decision. Before you make your move, consider these factors:

• First, contemplate your retirement goals. Whether you need maximum guaranteed income or are ready for lower payments for your beneficiaries’ extra protection.
• Second, take into account the cost. Some annuity products may offer benefits such as cost-of-living adjustment or liquidity features at an additional cost.
• Third, evaluate your financial situation. An annuity may not suit you if you have enough income or need immediate cash access. Remember, the choice should align with your unique needs.

Once you have considered these five steps, you are ready to buy a lifetime guaranteed income annuity.  

	Fixed Annuity	Fixed Index Annuity
Return Rate	Guaranteed Fixed Rate	Linked to Market Index
Growth Potential	Limited Growth Potential	Higher Growth Potential (based on market)
Risk Level	Low Risk Level	Balanced Risk Level
Impact of Market Downturn	Not affected By Market Downturn	Protected Against Losses From Market Downturn
Fees/Costs	Low Fees	Higher Fees
Interest Accumulation	Fixed Interest Rate	Varies (up to a cap)
Linked to Market Index	No	Yes
Potential for Loss	None	None
Early withdrawal penalties	Yes	Yes

Guaranteed Payout Lifetime Annuities And Retirement Income Payments

Pondering over your retirement plans and looking for a steady income stream that is guaranteed never to run out of money? Consider guaranteed payout annuities. As a financial product, they promise regular income for life—a surefire protection against outliving your savings.

Here are the key features of guaranteed payout annuities:

• Provides a guaranteed income for life.
• It starts paying out either immediately or at a deferred date. (Your choice)
• Offers inflation protection and portfolio diversification.
• Acts as a safety cushion against financial uncertainties.
• Ensures you never outlive your savings.

Integrity Now Insurance Brokers requires our clients to have emergency funds of no less than $50,000 that are not tied to their annuity. This ensures you have fast cash to replace a roof or a plumbing issue.

Types Of Guaranteed Lifetime Income Annuities

1. Fixed Lifetime Annuities

Fixed lifetime annuities, or immediate fixed annuities, are essentially contracts with an insurance company that ensure a steady income stream for the rest of your life. Think of it as a safety net for your golden years.

Top features of a fixed lifetime annuity:

• Regular income payments for life
• Payments begin immediately or at a future date
• Optional beneficiary protection
• Annual payment increase to combat inflation
• Potential for withdrawal features

2. Fixed Index Lifetime Annuities

Fixed-indexed lifetime annuities provide a guaranteed income stream for the rest of your life, irrespective of market downturns.

The best features of fixed index lifetime annuities:

• Guaranteed lifetime income,
• Provides financial security during retirement.
• Payouts based on age and interest rates during purchase,
• Optional purchase of protection for beneficiaries,
• Potential for annual payment increases to cope with inflation,
• No need to manage your account for income generation.
• Offers the potential of higher income payouts as these investments track with an index
• Guaranteed protection from losses
• It can offer a “pension-like” steady cash flow.

3. Multi-Year Lifetime Annuities

Considering a way to secure your income while stepping into retirement? Multi-Year Lifetime Annuities offer a solution.

A multi-year lifetime annuity promises you a regular income for life. This product stands out due to a host of incredible features.

• Reliable income, irrespective of market fluctuations
• Recurring income: Ensures steady cash flow post-retirement.
• Inflation-proof: Shields you from increases in prices.
• Option for immediate or deferred income
• Possibility of portfolio diversification

4. Single Premium Lifetime Annuities

Don’t fret about running out of money in your golden years. Consider a Single Premium Lifetime Annuity.

Pay a lump sum upfront and secure an income stream for life!

The top features of an SPIA include:

• The income you can’t outlive
• Guaranteed regular income for life
• Pay once, benefit forever
• Payments start immediately
• Option to cover a second person
• Choose how often you get paid

5. Qualified Longevity Lifetime Annuity

A Qualified Longevity Annuity Contract (QLAC) is an income annuity that provides you with reliable income for life, kicking in at a future date you choose.

Features:

• Guaranteed lifetime income
• Can be deferred to a future date
• Extend tax liability to age 85
• Secure higher-income payment options when medical bills start piling on
• Flexibility in accessing the contract’s accumulated value

6. Single-Life Lifetime Annuities

Single-life lifetime annuities are essentially your pension plan for your retirement. It’s a financial strategy promising lifelong income, even after the funds you’ve invested deplete.

Features of a single-life lifetime annuity include:

• A guaranteed income for life
• It offers a reliable income supplement alongside Social Security or other retirement plans
• Pays the highest monthly benefit
• Income stops once the owner passes away
• Financial support that outlasts your contributions
• It’s best for those who don’t intend to leave the fund for beneficiaries
• This investment can’t be outlived
• Not the best option when you have a spouse

7. Two-Life Lifetime Annuities

Two-Life Lifetime Annuities are financial products that promise to provide you and your spouse with a steady income for life. Reflect on this example: if you’re 70 and married, a two-life lifetime annuity would pay your spouse even after your demise.

Perks of Two-Life Lifetime Annuities:

• Regular income for the rest of your life.
• Payout continues for your spouse after your demise.
• It can provide security in old age.
• Offers spouse financial protection.
• Facilitates predictable budgeting.
• Slightly lower monthly payout compared to a single-life lifetime annuity.

Annuity Payout Options

Annuity payout options refer to how an annuity can pay out income over your lifetime.

Let’s break down the three common types you might encounter:

• Life with a cash refund: This option gives you income for as long as you live. If you pass away before collecting your original investment, your beneficiaries will receive the balance. Example: If you invest $100,000 and only receive $70,000 in payments, your beneficiaries would get the remaining $30,000.
• Life with a guarantee period: Here, you receive income throughout your lifetime. If you pass away prematurely, your beneficiaries will continue to receive payments until the guaranteed period ends. Example: If you choose a 10-year guarantee and die after eight years, your beneficiaries would receive payments for the remaining two years.
• Life only: This option offers the highest income but only pays out over your lifetime, with nothing going to your heirs. Example: If you choose this and live for 20 years, you’ll receive income for those 20 years and nothing beyond that.

How Much Income From An Annuity Will A $500,000 Investment Produce

The income generated from a $500,000 investment in an annuity will depend on various factors, such as the age at which the annuity is purchased, the interest rate, and the annuitant’s life expectancy.

Generally, the higher the interest rate and the longer the life expectancy, the larger the income produced. Additionally, if the annuity is purchased at a younger age, the income payout may be spread over a more extended period, resulting in a lower annual income amount. 

Is Lifetime Guaranteed Income Annuity Taxable?

A lifetime guaranteed income annuity is generally not taxable if purchased with after-tax dollars or a nonqualified income annuity. When you receive annuity payments, a portion of each payment is considered a return on your principal investment and is not subject to taxation. 

However, the remaining portion of the payment, representing the interest earned on your investment, is taxable as ordinary income. It’s important to note that the tax treatment may vary depending on the specific circumstances and the type of annuity.

If the annuity were purchased with pre-tax dollars, such as through a traditional IRA or a qualified retirement plan, each payment would be subject to income tax. These are considered qualified annuities and are fully taxable at withdrawal time.

Withdrawals that are taken out are subject to ordinary income tax. If withdrawals are made prior to age 59½, there may be a federal penalty of 10%, and there are usually charges for surrendering the earnings. 

Retirees establish a payment amount over their lifetime to reduce their taxable income.  

Always consult a tax professional before receiving income payments to verify how much taxes must be withheld. A deferred income annuity can help reduce the amount of income tax owed in a year.

What Are the Benefits of a Single Life Annuity for Lifetime Income?

When it comes to single life annuity understanding, the benefits are plentiful. With a single life annuity, you can ensure a steady stream of income for the rest of your life, providing financial security and peace of mind. This type of annuity is a valuable tool for retirement planning and long-term financial stability.

Guaranteed Lifetime Income Annuity Agent

As a guaranteed lifetime income annuity agent, we have the privilege of working with clients to help them secure a reliable and stable source of retirement income. At Integrity Now Insurance Brokers, we understand the importance of financial security and strive to guide our clients toward the best options for their unique needs.

With years of experience in the industry, we are proud to be your fixed annuity expert and a lifetime annuity specialist. We have in-depth knowledge of the various annuity products available and can provide expert annuity advice on which option is most suitable for each client.

Whether someone wants to start an annuity or change an existing one, we are here to help. We take pride in providing honest, transparent, and reliable services to our clients, ensuring their financial well-being now and in the future.

With our expertise and dedication to customer satisfaction, we aim to give our clients the peace of mind that comes with a guaranteed lifetime income annuity. 

Contact us today and request an annuity quote.