What Does A 10-Year Certain And Life Annuity Mean?

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What does a 10-year certain in life

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annuity mean? Stan the annuity man, also

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called life with 10-year period certain.

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Hi there, I'm Stan the Annuity Man,

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America's annuity agent, licensed in all

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50 states in Puerto Rico

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and the founder of Contractual

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Guarantees Only. I'm wearing the

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t-shirt. You know, I heart contractual

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guarantees. You own an annuity for what

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it will do, not what it might do. Never

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buy an annuity for growth, hypothetical,

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and non-G guaranteed returns. So we're

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going to talk about single premium

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immediate annuities life with 10 year

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and other structures after this.

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So life with a 10ear certain or joint

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life with a 10ear certain or life with a

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20-year certain or joint life with a

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with a 20-year certain it the certain

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part of that is the backs stop.

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So, let's say that you want income to

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start now and it's on your life, but you

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want a backs stop. Backs stop means

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what's the minimum amount of payments

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that my beneficiaries would receive if I

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died early in the contract. So, life

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means life. Life is as long as you are

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breathing or on a respirator. There's no

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ROI until you die. So, let's take the

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first example.

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Single premium immediate annuity. Life

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with a 10ear certain, it's going to pay

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you for life. But if you died year two,

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there's eight more years of payments. If

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you died year five, there's five more

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years of payments. If you died year 11,

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there's no payments for anybody. Make

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sense? Let's do it again. Life with a

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20year period certain. It's going to pay

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you for life as long as you're

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breathing. Don't care how long it is.

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It's 190. I don't care. It's going to

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pay you. If it's past that, they're

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going to pay you. And by the way,

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lifetime income is primarily based on

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life expectancy at the time you take the

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payments, not interest rates. Not

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interest rates, life expectancy based.

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So life of the 20ear certain means that

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if you passed away year five

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after taking out the policy, receiving

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five years of payments, you passed away

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year five, your beneficiaries get 15

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more years of payments. You passed away

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year 13, beneficiaries get seven more

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years of payments. You passed away year

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21, beneficiaries don't get any

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payments. Is that clear?

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Pretty simple. Just a couple things you

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need to understand. The shorter the back

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stop, the shorter the period certain,

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the higher the payment. Life with five

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typically is higher than life with 10.

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Life with 10 is typically higher than

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life with 15. Life with 15 is typically

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higher than life with 20. Life with 20

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is typically higher with than life with

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30. You're certain. They the the certain

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period can be as long as you want. The

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annuity company's just going to lower

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the payment to make up for that

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contractual guarantee on the backs stop.

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Remember little league the back stop.

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We're putting in back stops here. But

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period certain is not the only way to do

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it. A lot of financial journalists

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and and old school advisors that really

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don't know what they're talking about

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when it comes to annuities. They'll say

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we'll always do life in 20. That's dumb.

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I mean, that's just stupid. Um, if you

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said to me, Stan, I want to make sure

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that 100% of the money that I put in

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from the start is guaranteed to either

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go to me or my wife, my kids, somebody,

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but the annuity company doesn't keep

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any, and it pays for the rest of my life

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as long as I live. What's the most

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efficient, cost-effective way to do

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that? That's called life with cash

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refund.

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That's what that is. If you said to me,

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"Hey, Stan, um, I like the cash refund,

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but I don't want my kids to get the lump

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sum. I want them to get payments

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until the money's exhausted." That's

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life with installment refund. Meaning,

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you pass away, the payments continue

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uninterrupted and unchanged to the

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beneficiaries until the money is

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exhausted.

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There's 45 ways to do lifetime income

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with a period certain or lifetime income

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with cash refund or lifetime income with

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installment refund. It's customizable.

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So life in 20 life in 20 is not

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end all beall. Life in 10 is not end all

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beall. Life only means that when the bus

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hits you day two, money goes poof. But

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we typically don't do life only unless

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you tell us to and you have a specific

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reason fully understand it. I've got to

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make sure you fully understand it.

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It's the highest payment

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typically because you're shouldering

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some of the risk. With a life and cash

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refund, you're not shouldering any risk.

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You're transferring at all depending on

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your age. Life in 20, you might be

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transferring at all. When I say that,

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what if you're um if you do the life in

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20 and your projected life expectancy is

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14 years, you know, you're it's going

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farther out than what the life insurance

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company's projected you to live.

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It depends on how you want it to happen.

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We asked two questions. What do you want

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the money to contractually do? When do

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you want those contractual guarantees to

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start? Then after that, hopefully you

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email me stantheanuityman.com or go to

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my site, schedule a call, and then we'll

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drill down on the customization on how

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you want it to work.

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Money is going to be at the annuity

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company. Money is going to hit your bank

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account like clockwork. Long as you're

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breathing. I also encourage you to go to

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my site and download single premium

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immediate annuity owners manual,

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deferred income annuity owners manual.

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They're one and the same. one just your

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defer a SPIA it's called a deferred

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income annuity same thing pension

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products no moving parts no annual fees

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no market attachments no nonsense very

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very very very low built-in commissions

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as opposed to the whisbang hypothetical

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nonsense products out there

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these are good pension products in a

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world that we don't have pensions

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you know 9% of the of the of the private

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companies do and if you you teacher,

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military, whatever. You might have a

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pension, but most people don't. You have

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to put pensions in place to develop that

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what I call the income floor. You

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already own the best annuity on the

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planet. That's inflation. That's that's

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inflation protected. That's social

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security.

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Social Security is the best annuity on

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the planet because the increase that

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they give you is political, not

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actuarial. By the way, I'm contractual.

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Not Democrat or Republican. I'm

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contractual. Annuities are simple. We

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shop all carriers A+ rated for the

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highest guarantee.

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Period. A+ rated, highest guarantee for

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lifetime income. We don't care about the

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logo or the brochure or any of that

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crap. A+ or rated, highest guarantee.

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Okay?

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So, go to my site, run the quotes,

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download the books, and do me one last

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favor. spinning clock above my head's

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going to have a video up here that talks

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about how annuities really address

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inflation properly, contractually,

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pragmatically, not some hypothetical

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pitch that never comes true. Not some

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illustration that's not guaranteed. This

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is the way to do it. This is the only

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way to do it. For whatever reason, I'm

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the only one talking about it. I don't

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know why. I mean, this is math.

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Annuities are math. They're contracts.

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And just remember life, you know,

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lifetime income is based on your life

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expectancy. Older you are, the higher

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the payment, just like social security.

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All right, watch that video and I will

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see you next