Payout options for Annuity (Name 7)
1. Life annuity (no refund) This form of annuity provides payments to an annuitant from a specified date and for the rest of the annuitant’s life. Payments cease upon the annuitant’s death with no refund to survivors. A pure life annuity has the potential for providing the maximum income per dollar of premium. No beneficiary. Riskiest payout option
2. Period certain annuity These annuities provide a guaranteed number of payments. Payments will continue for the annuitant’s life even if he survives the guaranteed period provided. The longer the period selected, the smaller the monthly income payment. Have beneficiary only for the period certain
3. Joint life annuity This type of annuity provides a specified amount of income for two or more persons. The income received ceases upon the first death of the covered persons
4. Joint and survivor annuity Benefits under this type of annuity are paid throughout the lifetime of one or more annuitants. Therefore, payments continue until the last annuitant dies.
5. Temporary annuity This annuity pays benefits for a specific number of years or until the annuitant’s death, which ever comes first.
6. Installment refund annuity This annuity guarantees to pay an income to the annuitant each year as long as he lives. Upon death, the annuity will refund the remaining payments to a beneficiary in installments
7. Cash refund annuity This annuity pays, in a lump sum, the difference between the amount deposited into the annuity and the benefits received before the annuitant’s death. The lump-sum payment will be made to the annuitants beneficiary or estate