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The payouts for immediate annuities depend on whether you choose a life annuity or a term-certain annuity. It also depends on the age and gender of the annuitant, or the person who receives the money.
For example, a $100,000 premium on an immediate annuity may only generate $6,000 to $10,500 a year in lifetime payments, depending on how old you are when you sign your contract.
How an Immediate Annuity Works. An immediate annuity is a basic insurance contract that can be bought with a single payment in exchange for a series of payouts that are based on a chosen frequency ...
If you're a 65-year-old woman opting for a lifetime annuity, it might be closer to $608 a month. Fixed Annuity with a Set Payout Period: With a 5% interest rate and a 10-year payout, you could see ...
Using today's rates, a $10,000 immediate annuity for a 65-year-old might pay around $75 to $80 monthly for life. Delaying payments or investing more money would increase this amount.
Inflation protection: Some annuities offer cost-of-living adjustments, sometimes at an added cost, to help maintain purchasing power. Tax benefits : Earnings within the annuity grow tax-deferred. Cons
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