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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Nimish Shukla

Nimish Shukla

Financial Planning Professional

Nimish has spoken with thousands of customers about retirement spending. As a CFA Charterholder and licensed fixed annuity producer he values the importance of building an income stream for retirement. In addition to his work at Blueprint Income he is also a regular contributor to Nerdwallet.

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