Companies Offering Non-Refundable Single Payment Immediate Annuities

          Aside from providing income for life, a second major benefit of an immediate annuity, for those who worry about being swindled in their dotage by an unscrupulous investment salesman or a new spouse, is that most are virtually unswindleable!  Once you pay the money, you are going to get a monthly check for the rest of your life, period.  This is why an immediate annuity is sometimes called a “non-refund” annuity – once your single deposit premium is paid, you generally can’t get your money back, discouraging most swindlers.  When they learn that your assets have been invested in an SPIA, they’ll move on, instead, to the next vulnerable old-timer.

           To some, the purchase of an immediate annuity looks unattractive because it reduces their liquidity or ability to get their hands on their $200,000 (or whatever they paid) once they have bought the annuity.  What if someone comes along with a great deal on land in Nevada or what if one of the kids needs $50,000 to buy a house or a business or send a grandkid to college? You would no longer be able to say “yes.”  Is this a downside or an upside of an annuity?         

           .

 If you are thinking about investing in an immediate annuity, at least partially because you can’t change your mind if your mental acuity diminishes (or if someone preys on your weakness to get at those funds), make sure that the annuity that you choose does NOT offer you a liquidity option that will let you cash it in. 

           Some of the insurance companies that, at the time of this writing, appeared to protect you against yourself by making it impossible to cash in an SPIA include:

Allianz

American Equity

American General

Jackson National

Kansas City Life

Midland National

Minnesota Life Insurance Company

North American

Symetra

            This list is not inclusive and it may not be up-to-date.  If the lack of liquidity is a feature that appeals to you, double check to be sure that the company that you choose offers you this safeguard