Immediate Annuities

Immediate Annuities

Of all the types of annuities that the ING family of companies has to offer, the immediate annuity is probably the easiest to understand.

Why would I want an immediate annuity?

An immediate annuity is for someone with a lump sum of money who is interested in immediately turning that amount of money into a guaranteed income stream.

In other words, unlike the other types of annuities: fixed, index or variable, which are also called deferred annuities; the immediate annuity doesn’t accumulate any earnings for you at all. It’s purchased strictly to provide you an income payment on a regular basis which begins right away.

Who might an immediate annuity be suitable for?

As we said, it’s someone who wants a guaranteed income stream immediately:

  • People who want a retirement income and might want to consolidate some of their accounts instead of receiving multiple income payments.
  • Someone who has inherited a sum of money and wants to receive those funds over time.
  • Individuals who have been awarded a court settlement are commonly awarded a sum of money paid over time via an immediate annuity.

What are my income options?

You have a choice in how you receive your payments. There are a lot of options, but there are some standard options you’ll see most often. They’re given different names by different insurance companies, but they work pretty similarly.

Life income or single life

This means the income amount is calculated just on your life expectancy. You’ll be paid for as long as you live. A potential downfall could be, if you die earlier than expected, the payments cease and no further payments or cash value would be left for any heirs you might have.

Life with period certain

This option also pays you for your entire life, but if you should die within your chosen “period certain,” your named beneficiaries will continue to receive your income payments until that time period is up.

Period certain

You determine how long you’d like the money to last…say 20 years, and the insurance company will tell you how much income your investment will generate for you over that time period. Your beneficiaries will receive the balance of the account if you die during your time period.

Amount certain

This is “Period Certain’s” close cousin. In this case you determine how much income you need, say $5,000 per month, and the insurance company will tell you how long your income payments will last. And you beneficiaries will receive your account balance if you die during your income period.

Joint and survivor

This payout is calculated over two lives, typically a husband and wife. When the first annuitant dies, the survivor will receive some or all of the original payment for as long as they live, depending on the option they chose.

Let’s recap

So, if you’re interested in taking guaranteed payments from a lump sum of money you have (or will have), an immediate annuity could be suitable for your needs. Your ING financial professional can show you some income options specific to your situation and explain more of the benefits these unique products have to offer.

Need help with an ING Family of Companies' Annuity or claim request?

For Fixed, Index & Immediate Annuities: Call 800-369-5303.

For Variable Annuities: Call 800-366-0066.

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