Straight Life Annuity

A straight life annuity is a kind of retirement investment where one can get the highest level of the monthly benefit for life as an employee but it does not provide any death benefit protection.

It is essentially a series of monthly payments that continue for as long as one lives.

No one knows how many years of payment will be required and the benefit is divided into a payment that is based on the average life span of someone. 

It gives a higher level of retirement income, instead of continuing benefit for the beneficiary.  So in case of the death of the insured, one may not get anything. 

How to apply?

To invest one has to put in a lump sum of cash and complete the paperwork that guarantees to give regular income.  

The payments are made every month and the amount depends on age and long term interest rates.

• For those who apply through investing for monthly income calculator in old age, the periodical income can be good as the insurance company assumes that people in old age have less time to live.

• One can set up a joint annuity where the proceeds can be lower than a single annuity.

• One can add indexing and other features depending on their earnings.

• If bought with IRA 401(K), you pay tax based on normal rates. 

Advantages - 

There are many advantages of straight life as it is about security and consistency.  

The money is spent on stock markets, liquid assets or other areas to earn, by the insurance provider, but the insured gets a fixed income and is not affected by market volatility. 

Drawbacks- 

One may feel restricted if they want to invest in options where liquidity is required or if you want to have control over the way the funds are spent.