In a payout annuity, the policyholder pays the life and health insurance company a lump sum of money in return for a stream of fixed regular payments. Typically, the payments will be monthly, but they can also be quarterly or annually. These payments will be for either a fixed term of years (as term-certain annuities) or for the insured person’s lifetime (as lifetime annuities).
A payout annuity is a monthly income benefit protected under Assuris protection.
Note: Lifetime annuities typically have a guaranteed payment period. If the policyholder dies before the end of the guaranteed period, their beneficiary will receive the balance of the guaranteed income payments.
If your life and health insurance company fails, Assuris guarantees that you will retain up to $5,000/month or 90% of your promised monthly income benefit, whichever is higher.
Since your monthly income benefit is less than $5,000/month, you will retain your full benefit amount.
Protected benefit amount
Since your monthly income benefit is more than $5,000/month, you will retain 90% of your benefit amount.
($6,500 × 90%)
Adjusted benefit amount
A joint and survivor annuity is a joint policy that continues regular payments for as long as you or the joint annuitant live.
If you have a guarantee period on your payout annuity and you die before the end of that guarantee period, your policy may allow your estate to receive the present value of your payments as a lump sum.
The lump sum will be covered under Assuris accumulated value protection, up to $100,000 or 90% of the amount, whichever is higher.
If your annuity increases or decreases under the terms of the policy, for example by inflation adjustments, it will be protected based on the payments being made at the date of failure. After the date of failure, your annuity will increase or decrease based on the protected amount.
For quarterly benefit payments, the Assuris protection is up to $15,000 quarterly or 90% of the promised quarterly payments, whichever is higher.
For semi-annual benefit payments, the Assuris protection is up to $30,000/semi-annually or 90% of the promised semi-annual payments, whichever is higher.
For annual benefit payments, the Assuris protection is up to $60,000 annually or 90% of the promised annual payments, whichever is higher.