Also called Single Premium Immediate Annuity, this annuity contract has you make a single lump-sum payment to an insurance company. In exchange, you receive monthly income starting either immediately or within 12 months. The monthly income typically lasts for a pre-set period, your lifetime or the combined lifetimes of you and your spouse (called Joint and Survivor). Immediate income annuities are commonly used by retirees who want to convert a portion of their savings into guaranteed lifetime income. See Bonus Annuity, Fixed Annuity, Variable Annuity
Glossary
Immediate Income Annuity
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