What is a single premium immediate annuity (SPIA)?

The structure is simple: one payment to an insurance company, and income that starts soon after and follows the contract’s schedule — for a set period, for one life, or for two lives. There is no accumulation phase to manage and, in most contracts, little ability to change course after issue.

That simplicity is the appeal and the caution in one sentence. A SPIA is easy to understand and hard to unwind, so the decision deserves the same care as any permanent election.

Who tends to ask about SPIAs — and is that you?

The typical asker is retiring within the year: the paycheck is about to stop, and the question is how to switch income on. A SPIA is one way; keeping funds flexible, coordinating Social Security timing, and considering other contract types are others.

This page does not conclude that a SPIA fits you. It prepares the conversation, and a licensed insurance agent can explain how the structures differ using your actual facts.

What does a joint-and-survivor election mean for a couple?

A single-life contract pays while one person lives. A joint-and-survivor election continues payments while either spouse lives, usually in exchange for a smaller payment while both are living. For many couples the real question is not which version pays more, but whose runway the income must cover.

Couples should ask three things: what portion continues to the survivor, does the contract define that portion clearly, and how does the election interact with other survivor income such as Social Security? Those are contract-language questions, and they deserve answers in writing — not in a sales-conversation summary.

What should you settle before any contract discussion?

Walk this list first. Every item is a question you can answer without a single number, and each one changes what a useful conversation looks like.

  • Timing: when does income actually need to begin — and does that truly point to an immediate structure rather than a deferred one?
  • Coverage: one life or two? If two, which survivor portion does the household need?
  • Access: how much money must stay reachable outside any contract, for emergencies and for flexibility?
  • Other income: how do Social Security timing and any pension interact with the start date?
  • Taxes: how would payments be reported? Bring that question to a qualified tax professional.
  • Contract terms: which schedule, period, and survivor language would govern — and is each of them in writing?

Where do quotes fit?

Real SPIA numbers are quotes, not internet averages: they depend on age, the amount, the start date, the election, and the contract terms in force at issue. That is why this page shows none.

When you are ready to test a deferred-income scenario, the income calculator provides a cited public-sheet estimate. SPIA quotes still require contract-specific inputs and the applicable disclosures from a licensed insurance agent.