Whole Life Annuity Due
What Does Whole Life Annuity Due Mean?
A whole life annuity due is a financial product offered by an insurance company where the annuitant makes payments at the beginning of each month, quarter, or year, rather than at the end of the period. This type of annuity guarantees payouts to the annuitant for as long as they live during the distribution period.
It is also referred to as an annuity due.
Insuranceopedia Explains Whole Life Annuity Due
Annuities are commonly used as part of a retirement fund for the annuitant. During the accumulation period, the annuitant makes regular payments into the annuity. Later, during the liquidation period or annuitization phase, the annuitant begins to receive payouts. Unlike fixed-term annuities, a whole life annuity due provides payments for the rest of the annuitant’s life, continuing until their death.
Because payouts continue until death, retirees often weigh a whole life annuity due against permanent insurance products that build cash value, and the cost of whole life insurance is one comparison point that comes up in that decision. For older buyers planning income alongside a death benefit, it can also help to look at the best life insurance options for older adults when deciding how an annuity fits into the rest of a retirement plan.
