Today's Best Deferred Income Annuities
This page has a deferred income annuity ("longevity annuity") calculator. It instantly calculates the amount of income you are guaranteed to receive in the future. The amount you invest (aka Premium) is the single lump sum you pay to the insurance today. With this calculator you can also search for how much premium you'll need to pay in order to receive a certain future income amount.
To use the calculator, simply choose your age, gender, state of residence, and when you'd like your income to start. Then enter a dollar amount in either the box labeled "Investment" (premium) or "Monthly Income." Click "Calculate" and you will instantly get your annuity quotes. Feel free to call 800-872-6684 if you have any questions about these annuities or your quotes.
Q:What is a Deferred Income Annuity?
Deferred income annuities, also commonly referred to as longevity annuities, provide contract owners with a guaranteed future income stream that begins at a pre-determined later date. For example, a 40 year old preparing for their retirement could deposit premium with the intention of beginning withdrawals at 59 ½.
Q: Can I deposit premiums into a DIA contract over time?
Premiums can be placed into DIA contracts in a lump-sum or over time (flexible premium purchase). While most DIA’s offer both premium options, it is important to read your policy’s prospectus prior to depositing funds.
Q: How will my income be paid?
The most commonly chosen DIA income payment option is lifetime; guaranteed level income payments over the duration of the contract owner’s lifetime. However, some contracts offer joint-life, period certain, installment and cash-refund income payment options. Joint-life income benefits are payable to the contract owner and the named survivor. Period certain payments offer guaranteed income payments over a specified period of time (i.e. 5 years, 10 years, and 15 years). If the contract owner dies during their specified income period, remaining income payments will be paid to the named beneficiary(ies).
Q: How is my monthly income payment calculated?
The income payments are determined based upon current interest rates, the age of the contract owner, the expected life expectancy, the amount of premium deposited, the length of the deferral period and income options chosen.
Q: How will rising inflation impact my income payments over time?
Most annuity contracts offer inflation protection as an additional rider chosen at the time of application, causing your income payments to increase at a set rate annually (2%, 3%, 4%, etc.). Inflation protection protects a contract owner’s buying power.
Q: What happens to my premium if I die before I receive any payments?
The answer to this question is, ‘it depends’. Most DIAs offer an optional death benefit rider which pays either a lump-sum return of the initial premium or sometimes a lump sum return of your initial premium plus interest (as high as 3.00% for each year your annuity was in deferral) to your named beneficiaries upon your premature death. In most cases, if you don’t add this rider to your base contract, you forfeit your premiums in the event of your premature death.
Q: Can I modify when my income payments begin?
Most annuity contracts require you to choose the date whereby your income stream will begin at the time of application. However, some contracts do provide some flexibility following contract issuance. If you move your income payment date forward, the income payment amount would likely decrease. And, if you move your income payment date backward, the amount would likely increase.
Q: In the event of an unforeseen emergency, can I access my capital or income?
In the event you experience extreme hardship, you may be able to access a number of advanced income payments. Be sure to check with your contract’s provisions to determine what options may be available to you.
Q: Are Deferred Income Annuities Safe Investment?
Premiums placed into DIAs are guaranteed by the underlying insurance company. Rating agencies such as A.M. Best, Moody’s and Standard and Poor’s provide ratings to potential policy holders. Companies with higher ratings are deemed more financially secure than those with lower ratings. Insurance companies must maintain sufficient cash reserves to cover claims as laid out by state guaranty associations. Should the insurance company fail financially, additional coverage is provided to contract owners by state guaranty associations.