SPIA Meaning and
Definition
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SPIA is an acronym that stands for Single Premium Immediate Annuity. It refers to a type of annuity contract offered by insurance companies. An annuity is a long-term financial product that provides individuals with a regular income during their retirement years.
A SPIA is distinct in that it requires a lump sum payment from the annuitant at the time of purchase, known as a single premium, in exchange for an immediate stream of income payments. Once the contract is established, the insurance company guarantees a fixed or variable payout amount to the annuitant on a regular basis. This fixed or variable payout can be received monthly, quarterly, annually, or at other agreed intervals.
SPIAs are typically chosen by individuals who want to convert a lump sum of money, such as retirement savings or an inheritance, into a consistent and reliable income stream. They provide financial security and help address concerns about outliving one's assets or managing investment risks during retirement.
The specifics of a SPIA can vary depending on the terms of the contract, such as the payout period, the payout amount, or any associated riders. It is important for individuals considering a SPIA to assess their financial goals, risk tolerance, and consult with a financial advisor to understand the terms and conditions of the contract before making a decision.
Common Misspellings for SPIA
- sp9a
- sp8a
- s-pia
- s0pia
- sp0ia
- spiua
- spija
- spkia
- spioa
- sp9ia
- spi9a
- sp8ia
- spi8a
- spiza
- spiaw
- sppia
- spiia
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