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Immediate Annuities

Immediate annuities enable you to convert the money you have into a steady stream of income to help with retirement. Because immediate annuities rates are stated at purchase, you know your payment amount will typically remain the same over time. Work with your financial professional to find out if an annuity may be right for you.
Benefits

Benefits of immediate annuities

Simplicity
Immediate annuities offer a simpler form of this retirement tool, and typically don’t have many of the expenses associated with other types of investments that can impact earnings and be difficult to understand.
Guaranteed return

Because you earn a set payment rate, you know how your money will perform over time. Your income payments are guaranteed, and you are only taxed on the earnings as you receive them.*

Guaranteed income
Immediate annuities — or income annuities — allow you to set up a steady stream of income for a set period of time. You can also set up these payouts for the rest of your life — so you won’t have to worry about outliving this income.
*Annuity payments from a tax-qualified plan will be fully taxable as ordinary income. Withdrawals made prior to age 59 1/2 may be subject to an additional 10% IRS tax penalty. Guarantees are backed by the financial strength and claims-paying ability of the issuing company.
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Ready to convert assets into an immediate and steady stream of income?

You want to be confident that the company you are entrusting with your assets will back its promises for the long term. Protective Life’s commitment to help you protect tomorrow is backed by more than 100 years of serving customers like you, as well as our financial strength and stability. Work with your financial professional to find out if an annuity may be right for you.

How do immediate annuities work?

Immediate annuity infographic
Most annuities have two phases. The first phase is when you fund, or purchase them, and you accumulate money within the annuity. The second phase is when they begin providing income. Because you purchase an immediate annuity in one initial deposit, you don’t have an accumulation phase. So immediate annuities are typically chosen to provide retirement income now rather than grow money for future payments in retirement. You can begin receiving income payments immediately, or delay them for up to 12 months. An immediate annuity can also provide payments to a joint annuitant or beneficiary.

Income stream options for immediate annuities 

The payments you receive from an immediate annuity can vary depending on your age, life expectancy, and other factors, such as how long you want the payments to continue
Understand Annuity Payouts
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Immediate annuities can be customized to offer different types of payouts to choose from, including: 
  • Life only annuity: This option ensures that the immediate annuity will provide guaranteed income over the lifetime of an individual. When that person dies, the payments stop, even if only one payment has been made.
  • Joint life annuity or Joint and Survivor annuity: As the name implies, this option allows an immediate annuity to provide joint coverage for two individuals. So that you maintain a selected income stream through the death of the second individual. Based on your contract, the survivor can receive a portion of the annuity payments or the full payments.
  • Period certain annuity: This type of immediate annuity guarantees that the contract pays out for a certain period of time. Payments continue to your beneficiary for the remainder of the period should you die within that time.
  • Life with period certain: Payments are made for a certain number of years or for your lifetime, whichever is longer. If you die during the specified period, the remaining payments are made to your beneficiary.
Why choose Protective Life for your immediate annuity? 
When you purchase an annuity for retirement, you begin a long-term relationship with a life insurance company. You want to be sure that company has the experience, character and strength to serve you now and in the future. You want to be confident that the company will back its promises for the long term. Protective Life’s commitment to help you protect tomorrow is backed by more than 100 years of serving customers like you, as well as our financial strength and stability.
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Common questions about immediate annuities

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What is an immediate annuity?

An immediate annuity enables you to convert the money you have into a predictable stream of income to help with retirement. Immediate annuity payments can be set to payout for your lifetime — so you won't have to worry about outliving this income.

When does an immediate annuity begin making payments?

Immediate annuity payments begin immediately, or you can delay them for up to 12 months. An immediate annuity can also provide payments to a joint annuitant or beneficiary.

Get a retirement annuity with Protective Life

Protective offers a variety of fixed annuities with different options to choose from based on your retirement needs. Work with your financial professional to find out if an annuity may be right for you.
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Neither Protective Life nor its representatives offer legal or tax advice. Any tax-related statements made in this material are based upon general information and represent only one interpretation of current federal tax law as it relates to annuities. Moreover, the tax treatment of annuities is subject to change. Please consult your legal or tax advisor regarding your individual situation before making any tax-related decisions.

Single premium immediate annuity contracts issued under policy form series IPD-2112 (PLICO) and AF-2112 (PLAIC). Policy form numbers, product availability and product features may vary by state.

 

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