Single Annuitant (Single Life Annuity)
What Does Single Annuitant (Single Life Annuity) Mean?
A Single Annuitant, also known as a Single Life Annuity, is a retirement financial plan in which the insured makes payments to the insurer, either in installments or as a lump sum. In return, the insurer agrees to provide scheduled payments to the insured for the remainder of their life. The payments cease upon the death of the annuity owner and do not extend to any survivors.
Insuranceopedia Explains Single Annuitant (Single Life Annuity)
Because the Single Life Annuity (also known as the straight life policy) covers only one person, it may have limited appeal to future retirees. The annual payments cease upon the death of the annuitant, meaning that relatives and dependents will not receive any further payments from the insurer. However, this narrow coverage makes the annuity relatively affordable.
There are other types of annuities that cover more than one person, such as the joint-and-survivor annuity, which continues payments to a surviving spouse or beneficiary after the annuitant’s death. Additionally, if the insured is concerned with providing income to family members after their death, they can rely on the death benefit provided by a life insurance policy.
