Annuity Payout Options

One of the many ways to secure the financial future is through the purchase of annuity contracts. Like the regular pension account, annuities are also a form of retirement savings that allows you to receive periodic pension after a series of contribution payments. One of the perks of acquiring annuities is that you can choose from the different types of contracts available. Another benefit is the different payout options to choose from for the periodic distributions. Here are some annuities explained:

Straight-Life Annuity

In a straight-life annuity, the annuitant receives regular payments until he dies. Therefore, the length of time that the insurance company will distribute the payouts will largely depend on how long the annuitant is going to live. The company bears risk in that it will only be able to keep whatever is left if the purchaser of the contract dies early. Also, there is no designated beneficiary, as no more payment is allowed after the annuitant’s death.

Life Annuity with Period Certain

The length of time that the payouts will be made is already determined in the life annuity with period certain option. Unlike the straight life annuity, there is a beneficiary designated who will receive any amount left should the annuitant die before the pre-determined period ends.

Unit Refund Life Annuity

In this payout option, there is no pre-determined annuity period. Therefore, the amount of payout will depend on the total value of the annuity units accumulated by the purchaser of the contract. And should he die without getting the whole value of the annuity units, the remaining portion will be paid to an assigned beneficiary.

Joint and Last Survivor Life Annuity

In the joint and last survivor life annuity option, lifetime payments are also made. In this type of payout, however, distributions are given to two people.

The future is uncertain that you should always come prepared. So make a decision now to purchase an annuity contract for a secured future.


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