Can annuities be inherited? | Ep.72

In this episode, we dive into the often-overlooked question: can annuities be passed down to loved ones? The answer isn’t straightforward, as it depends on the type of annuity and how its payments are structured. Join us as we break down the nuances of annuity inheritance, exploring how different types, like life-only Single-Premium Immediate Annuities (SPIAs), differ from fixed, fixed index, and variable annuities when it comes to leaving a financial legacy.

We’ll explain why life-only annuitized payments on SPIAs stop entirely upon the annuitant’s death, leaving no balance for inheritance. In contrast, other types of annuities may allow beneficiaries to inherit the remaining balance in two primary ways: as a lump sum or through spousal continuance, which lets a spouse take over the contract and potentially continue its income stream.

We’ll also cover additional options like death benefits and guaranteed payout periods that provide more flexibility for those looking to create financial security for their loved ones. Whether you’re considering an annuity for retirement or inheritance purposes, this episode provides valuable insights into what happens to your annuity when you’re gone.

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