What Are Lifetime Annuities? 
Lifetime annuities are annuities that pay the annuitants monthly payments for the rest of their lives . The annuity can be an immediate annuity , where a lump sum is used to purchase the annuity , and payments begin right away . Or they can be deferred annuities , where money is put into the annuity over a number of years before the annuity is annuitized . The annuity can be fixed , with guaranteed fixed payments . Or it can be variable , which may generate higher or lower payments than a fixed annuity . When the annuitant dies , the payments of a lifetime annuity end . If the annuity holder lives longer than expected , they can do very well with a lifetime annuity . If they live a shorter than expected , that is not favorable to the annuity holder . However , some contracts allow payment of an amount equal to the initial investment to the beneficiary . 