None
SO
The Annuity Pitch Skips One Number: What a $250,000 Policy Costs Your Heirs
['Carl Sullivan', 'July', 'Min Read']
Yahoo Finance
Quick ReadA life-only SPIA buyer who dies after two years leaves roughly $215,000 unrecovered, with every unpaid dollar going to the insurer instead of heirs.
Cash-refund or period-certain riders protect heirs by returning unpaid principal, cutting monthly income by only 5% to 10%.
Self-funding retirement income through bond ladders or Treasuries can yield 4% to 5% while preserving principal, but shifts longevity risk entirely to the retiree.
Under a straight life-only single premium immediate annuity (SPIA), the heirs receive nothing.
A life-only SPIA pays the highest income because the insurer keeps every unpaid dollar when you die.