No other person would receive any benefits in the event of your death. Life Annuity with Period Certain. Installment Refund Life Annuity. Monthly payments are made for life, until the total amount paid out equals the initial fund at retirement. Joint and Survivor Life Annuity.
Most insurers also permit a combination of fixed annuity and variable annuity income at retirement.
The rates will vary depending on the annuity option selected. Since annuity rates are based on mortality tables, they may also vary with the age of the annuitant. The older one is at the time the accumulation is converted to an annuity, the more likely the monthly annuity will be larger because of the shorter life expectancy. It reflects the insurance company's realistic estimate of benefits payable based on its investment projections. A brief explanation is necessary on a concept that some insurance agents are attempting to sell as an alternative to the joint life annuity option for a married couple.