We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
How We Make Money.
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for .
Editorial Integrity
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
How We Make Money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
Dear Insurance Adviser,
I’m 70 years old. Let’s say I buy an annuity, electing to defer payments for five years, and then begin receiving monthly payments. Then, three years after that, I die. What happens to the unpaid balance of my investment? — Older and Wiser
Dear OAW,
Annuities are the exact opposite of life insurance. Life insurance pays benefits to those who die too early. Annuities pay benefits to those who live too long. With life insurance, people who die (or at least their beneficiaries) collect from the premiums of people who are still living. With annuities, people who outlive their annuity investment continue to collect a payout from those who did not. In its purest form, an annuity pays a monthly stipend for as long as you live, whether it be two weeks or 25 years.
If you buy an annuity and die three years later, the balance of your investment gets redistributed to those who live beyond their life expectancy. If that’s a little too distasteful to you — to lose the rest of your investment after only three years of collecting monthly checks — and if you are willing to take a slightly reduced amount, insurance companies will guarantee to pay you or your beneficiary that reduced amount for at least 10 years.
If you’re married, there are options that will pay you and your spouse for as long as you both live.
Every insurance company offering annuities offers countless variations of payouts that will not end upon your death. Talk to your financial adviser to get a recommendation.
Finally, make sure the company making the annuity payments is solid financially, with an A.M. Best Co. rating of “excellent” — A or better.
Live long and prosper!
Ask the adviser
To ask a question of the Insurance Adviser, go to the”Ask the Experts” page and select “Insurance” from the drop-down box. Read more Insurance Adviser columns.
Bankrate’s content, including the guidance of its advice-and-expert columns and this website, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this website is governed by Bankrate’s Terms of Use.
Share