What happens to the money when I die?
The contract and payment choice decide. Some keep paying a spouse. Others may pay little or nothing after you die.
The fair worry
You may want income now and something left for someone later. I want you to see why the payment choice matters to both.
The answer
Some income choices cover your life and your spouse's life. That means payments can continue for the spouse who lives longer.
Other choices cover only your life. Those payments can stop when you die, even after just a few payments.
Some contracts have a death benefit, which pays money after you die. That benefit isn't always tax free. So the contract's payment terms matter as much as the amount you put in.
The downside
Unused money doesn't always pass on like a bank balance. The income choice affects what someone else receives.
At your consultation
Start your free consultation with who you want provided for. Your retirement advisor will put what they'd receive beside the income you need while you're alive.
More questions on this topic
- How much should I put in?There's no one right amount, and it doesn't have to be all or nothing.
- Can one annuity do growth and income?Yes. Some annuities let your money grow and provide income.
- Are the fees high?Fees can be high. What you pay depends on the annuity type and contract.