What Is A Life Annuity at Life

What Is A Life Annuity. Features of a life annuity. Amanda shih is an insurance editor and licensed life, health, and disability agent at policygenius in new york city.

For comparison, the other type of annuity is a deferred annuity in which you make payments for a period of time known as the accumulation phase. You trade an insurance company a lump sum and they guarantee you a monthly income for life. A lifetime annuity is a financial product you can buy with a lump sum of money.

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A single life annuity, or straight life annuity, can provide a retiree with a monthly payment for as long as he or she lives. If you pass away during the guaranteed period, the rest of the payments will go to your beneficiary. The life annuity sale involves the real estate sale by an owner (the annuitant) to a purchaser (known as the debtor) who shall pay the price in the form of an annuity.this annuity is known to be life annuity because it shall lapse overnight on the annuitant’s death. A straight life annuity is an annuity that pays a guaranteed stream of income but ceases payments upon the death of the annuity holder.