This kind of annuity produces the largest periodic payment among annuities that are guaranteed and continue for the life of the annuitant. No provision is made for heirs because the contract terminates on the death of the annuitant, and all remaining principal is retained by the insurance company. Accordingly, a substantial loss is incurred if the annuitant dies early. As a result, this type of annuity is used most often by clients who require higher, guaranteed payments for the rest of their lives and are comfortable invading principal while they are alive. You'll need the services of a licensed insurance agent.
Life annuities with refund provisions .
To qualify under the Medicaid guidelines, the period of the guarantee cannot be longer than the actuarial life expectancy of the annuitant. Period certain annuities . These annuities have no life component. The period of the annuity payments is predetermined and does not depend on the survival of the annuitant. The payment is guaranteed and will be made either to the original beneficiary or, in the event of the original beneficiary's death, to contingent beneficiaries named in the policy.