🕊️ Do annuities have a death benefit? Annuities Pros

🕊️ Do annuities have a death benefit? Annuities Pros

🕊️ Do annuities have a death benefit? Annuities Pros. When you invest in an annuity, you’re doing it to secure future income—often for retirement. But what happens if you pass away before collecting everything you’ve put in? Many people wonder: Do annuities have a death benefit? The short answer is yes—but the details matter.

Let’s walk through what that really means.

💡 What Is a Death Benefit in an Annuity?

A death benefit is money paid to your beneficiary if you pass away before or during the annuity payout period. But how much your loved ones receive depends on the type of annuity you have and the options you selected when you bought it.

🧾 Types of Annuities and How Death Benefits Work

Here’s a breakdown of how different annuities handle death benefits:

1. Deferred Annuities

These are annuities you fund now to begin receiving payments later (often in retirement).

• If you pass away during the accumulation phase (before payments begin), your beneficiary typically receives the account value or premiums paid, often plus interest.
• Some annuities also offer enhanced death benefits (for an additional cost), which could lock in higher values if the annuity grew over time.

2. Immediate Annuities

These start paying income shortly after you buy them. Death benefits depend on the payout option you chose:

• Life Only: No death benefit—payments stop when you pass.
• Life with Period Certain: If you die within the guaranteed period (e.g., 10 or 20 years), your beneficiary receives the remaining payments.
• Joint and Survivor: Payments continue to your spouse or partner after you die.

🧬 Customizing Your Death Benefit – 🕊️ Do annuities have a death benefit? Annuities Pros

When you set up your annuity, you can choose features that protect your loved ones. Common options include:

• Return of Premium: Guarantees your beneficiaries get at least what you put in.
• Guaranteed Periods: Ensures your beneficiaries receive income for a minimum number of years.
• Enhanced Death Benefit Riders: Optional add-ons that may increase the value passed to heirs, especially if your annuity has grown.

⚖️ Things to Consider

• Cost: Some death benefit features come with added fees.
• Taxes: Your beneficiaries may owe income taxes on the money they receive.
• Timing: If leaving money to heirs is a top priority, consider whether an annuity or another financial product (like life insurance) is the better tool.

❤️ Final Thoughts

Annuities can absolutely provide a death benefit—but only if they’re set up properly. That’s why working with a fiduciary financial advisor is so important. At Mintco Financial, we walk clients through their options, helping them balance income goals and legacy wishes.

If you’re considering an annuity or want to review the one you already have, let’s talk. We can help you understand if your plan is protecting your loved ones the way you want it to.

📞 Ready to review your annuity or explore options with a death benefit?
Contact Mintco Financial today and talk with a fiduciary advisor who puts your goals first.