Immediate Annuities Explained
An immediate annuity turns a lump sum into a steady paycheck — backed by the issuing insurer — that can start right away. Here's how they work.
An immediate annuity converts a lump sum into a stream of income payments that begin almost right away — useful when you need a paycheck now.
This guide explains how immediate annuities work, their payout options, and the trade-offs to weigh.
How immediate annuities work
Exchanging a lump sum for guaranteed payments that start within about a year.
Payout options
Life-only, period-certain, and joint payouts, and how each affects your income.
The income-for-liquidity trade-off
Why higher guaranteed income usually means giving up access to the lump sum.
When an immediate annuity fits
Situations where converting savings to income now makes sense.
This guide is for general educational purposes only and is not financial, tax, or legal advice. Tim Hartle is an independent insurance professional. Annuity guarantees are subject to the claims-paying ability of the issuing insurance company and are not FDIC insured. Rules and product features vary by situation and by state. Please consult a qualified advisor about your own circumstances.
Frequently Asked
When do payments from an immediate annuity start?
Can I get my lump sum back?
Is the income guaranteed for life?
Apply This to Your Own Plan
Schedule your complimentary, no-pressure Retirement Income Review with Tim. Call (727) 692-5866 or book below.
Annuities are insurance contracts. Guarantees, including guaranteed lifetime income benefits where available, are subject to the claims-paying ability of the issuing insurance company. Product features, fees, withdrawal restrictions, and surrender charges vary by contract.