What Happens to an Immediate Annuity When You Die?

Oct 4, 2022

Blueprint Income Team

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.

To get real-time personalized immediate annuity quotes with our annuity calculator click here.

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

Blueprint Income Team

We are a team of finance, insurance, and actuarial professionals working to make it easier for everyone to achieve a steady and comfortable retirement. We write about annuities (the good and the bad) and provide strategies to help Americans prepare for retirement.

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