Immediate annuity

An immediate payment annuity is an annuity contract that is purchased with a single payment and pays a guaranteed income that starts almost immediately. Also called a “single-premium immediate annuity (SPIA),” “income annuity,” or simply an “immediate annuity,” an immediate payment annuity generally starts payment one month after a premium is paid and continues for as long as the buyer is alive or for a specific period of time. The longer an annuitant lives, the better the return will be. Such annuities are especially suitable for retirees who are concerned about outliving their savings—Read more at Investopedia. Kagan, Julia. “Immediate Payment Annuity.” 17 November 2019