Direct answer
Lifetime annuity payments work by converting a lump sum into a series of periodic distributions that continue for as long as you live, though the total amount depends on your age, gender, and current interest rates at the time of purchase. It depends on whether you select a ‘life only’ option, which ceases payments upon death, or a ‘life with period certain’ option that guarantees payments to a beneficiary for a set timeframe.
Annuity contract actuarial tables and standard insurance product disclosure documents provided by the issuing carrier. For additional information about the fundamentals of how annuities function, see the Investor.gov glossary.
What this means for you
Lifetime annuity payments work by converting a lump sum into a series of periodic distributions that continue for as long as you live, though the total amount depends on your age, gender, and current interest rates at the time of purchase. It depends on whether you select a ‘life only’ option, which ceases payments upon death, or a ‘life with period certain’ option that guarantees payments to a beneficiary for a set timeframe.
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