A continuing annuity is a regular payment made to an individual, typically on a monthly or annual basis, that ceases upon the person’s death. This form of payment is commonly obtained through a life insurance agreement and offers fixed payments for a designated duration. Various types of annuities exist, including fixed annuities, variable annuities, and survivorship annuities. A survivorship annuity ensures that payments continue to be made to a surviving individual, typically a spouse, following the death of the original annuitant.
A continuing annuity, also known as a survivorship annuity, is a type of annuity that guarantees ongoing payments to a surviving spouse after the original annuitant passes away. This provides financial security and peace of mind, ensuring that the surviving spouse will have a source of income even after the death of the primary annuitant. Continuing annuities are commonly used in retirement planning to provide income for both spouses throughout their lifetimes.
A continuing annuity is a series of payments made at regular intervals, typically monthly or annually, for a specified period of time or for the lifetime of the recipient.
A continuing annuity provides regular, ongoing payments over time, while a lump sum payment is a one-time, single payment of a larger sum of money.
There are various types of continuing annuities, including fixed annuities, variable annuities, immediate annuities, and deferred annuities.
Yes, it is possible to sell your continuing annuity to a third party in exchange for a lump sum payment. This is known as a structured settlement buyout.
The tax treatment of continuing annuity payments depends on the specific terms of the annuity and the source of the funds. It is important to consult with a tax professional for personalized advice.
In some cases, it may be possible to change the payment schedule of a continuing annuity, but this would depend on the terms of the annuity contract and the policies of the issuing company.
The treatment of a continuing annuity upon the death of the recipient varies depending on the specific terms of the annuity contract. Some annuities may provide for payments to continue to a designated beneficiary, while others may cease upon the recipient’s death.
It is generally not possible to borrow against a continuing annuity, as the payments are typically structured to provide a steady stream of income to the recipient.
The fees associated with a continuing annuity can vary depending on the type of annuity and the issuing company. Common fees may include administrative fees, investment management fees, and surrender charges for early withdrawals.
Choosing the right continuing annuity involves considering factors such as your financial goals, risk tolerance, and time horizon. It is advisable to seek guidance from a financial advisor or insurance professional to help determine the most suitable annuity for your individual circumstances.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/continuing-annuity/
- Modern Language Association (MLA):Continuing Annuity. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/continuing-annuity/.
- Chicago Manual of Style (CMS):Continuing Annuity. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/continuing-annuity/ (accessed: May 09 2024).
- American Psychological Association (APA):Continuing Annuity. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/continuing-annuity/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts