A SPIA converts one deposit into income you cannot outlive. Call 1-800-MEDIGAP to compare carriers.
How does a single premium immediate annuity work?
With a single premium immediate annuity, you hand an insurer one lump sum and, in return, the insurer guarantees income payments that begin almost immediately, usually within 30 days to 12 months. You choose how long the income lasts: your lifetime, a set number of years, or both lives of a married couple. The insurer pools your premium with others and pays you based on current interest rates and life expectancy. Once issued, the income is contractually fixed and unaffected by market swings. The tradeoff is liquidity: you generally give up access to the principal. To compare SPIA quotes from A-rated carriers, call 1-800-MEDIGAP.
Who should consider a SPIA?
A SPIA suits retirees who want certainty: a guaranteed check to cover essential bills like housing, food, and Medicare premiums, regardless of market conditions. It is especially useful when Social Security and any pension fall short of your fixed costs. A SPIA is less ideal if you need emergency liquidity, want to leave the full lump sum to heirs, or expect large near-term expenses. Many retirees use a SPIA for only a portion of savings, keeping the rest invested and accessible. To decide how a SPIA fits your retirement and Medicare budget, call 1-800-MEDIGAP for a no-cost consultation.