What Does “Income for Life” Mean in an Annuity Contract?

Short Answer

Income for life means annuity payments continue for as long as the covered individual, or individuals in a joint structure, are living.

What Is Income for Life?

Income for life is a contractual guarantee within certain annuity products that provides payments for the duration of the annuitant’s lifetime.

Payments continue regardless of how long the individual lives.

How Income for Life Is Structured

Income for life may be structured as single life or joint life.

Single life payments cover one individual and typically provide higher payments.

Joint life payments continue for as long as one of the two covered individuals is living.

Which Annuities Provide Income for Life?

Products that provide income for life include Single Premium Immediate Annuities, Deferred Income Annuities, Qualified Longevity Annuity Contracts, and Income Riders.

Are Annuities Designed for Market Growth?

No. Annuities are transfer-of-risk contracts designed for contractual guarantees, not market growth.

Can Unused Money Go to Beneficiaries?

Yes. Annuities can be structured so that 100 percent of unused money goes to beneficiaries.

Bottom Line

Income for life is a contractual annuity feature that guarantees payments for as long as the covered life or lives are living.

FAQ

Does income for life stop if markets decline?

‍No. Income for life payments are contractual and not attached to market performance.

Can income for life cover a spouse?

‍Yes. Joint life structures provide payments as long as one spouse is living.

Are all annuities income for life products?

‍No. Only specific annuity types provide contractual lifetime income.

Can beneficiaries receive unused funds?

‍Yes. Contracts can be structured so unused funds go to beneficiaries.