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What You Need to Know about Lifetime Annuities

If you live in the United States and have a lifetime annuity, Cashout Annuity can help you understand it better. Unlike guaranteed annuities, which are only good for an allotted time period, life annuities are good for the entire lifetime of the recipient. Insurance companies will pay these annuities for as long as the owner is alive, but the payments stop at the time of death.

Life Annuity Value

The value of a lifetime annuity is based on the probability that the recipient will live to each future payment period. Life tables are used to calculate these probabilities. The value also depends on the timing of the payments themselves, just as with guaranteed annuities. However, life annuities may not be calculated with the same formulas, because they account for the probability of death at each age.


Variable Annuities

Variable annuities are long-term investments that are suitable for funding, but are subject to market fluctuations and investment risk, including the possibility of loss of principal. Variable annuities are sold by prospectus, which contains information about the variable annuity, including a description of applicable fees and charges. These include, but are not limited to:

• Administrative Fees
• Charges for Riders
• Expense Risk Charges
• Mortality Risk Charges

• Optional Benefit Charges


The prospectus can be obtained from the insurance company offering the variable annuity or from your financial professional. Read it carefully before you invest.