What Happens to an Immediate Annuity When You Die?

Published July 25, 2019

If you have an immediate annuity and pass away, the contract will terminate unless you include a death benefit (a.k.a. a cash refund or death benefit) or a period certain. Including the death benefit ensures that a beneficiary receives the premium paid less any income payments the owner had received prior to death.

Even if the immediate annuity is purchased with a death benefit, the beneficiary would not receive any money if income payments exceed the original premium paid. The period certain, on the other hand, provides for a continuation of payments to the beneficiary for the remainder of the certain period. If the certain period has passed, the beneficiary will not receive any additional payments.

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If you’re interested in reading more, here are several articles on immediate annuities.

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Kristin Foresti

Kristin Foresti

Financial Planning Professional

Kristin is an expert in fixed and income annuities and knows the ins and outs of most of the products on the market. She is the primary contact for Blueprint Income customers with questions about building income and growing assets.

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