Immediate Annuities

In an immediate annuity, the contract is purchased with a single lump-sum payment and in exchange, pays a guaranteed income that typically starts within 30 days.


You’re basically exchanging control of your money for a guaranteed stream of income.

Pros of Immediate Annuities

  • Guaranteed income
  • Simple concept
  • Pension alternative
  • Generally gives a higher payout than other annuities
  • No fees for this type of annuity

Cons of Immediate Annuities

  • Inflexible and irreversible
  • No growth opportunities
  • Typically no inflation protection

Immediate Annuities Are Best For:

  • Pension replacement/li>
  • Immediate income needs
  • Estate distribution – control how your money is given to your beneficiaries