Rytvae Consulting · Think Right · Invest Right
Annuity Options Comparison
Result
Chart
Show formula & working
Income per instalment = purchase price × rate ÷ instalments a year · IRR from −price today, the instalments (after any deferment) and the price back at the end where it applies
Details
How this works
An annuity turns a lumpsum into income for life. Options that return the purchase price or continue to a spouse pay less each month.
The IRR shows the effective yearly return of each option over the years you expect it to pay, so options can be compared on one scale.
Frequently asked questions
Which option is best?
It depends on what you need: highest income (life annuity), protecting a spouse (joint life), or leaving the capital to heirs (return of purchase price).
Is annuity income taxable?
Yes, it is taxed as income in the year you receive it.
Can I change the option later?
Usually not. The option is fixed at purchase.
Reviewing your cover?
Talk to Rytvae about how much cover you need and what your policy wording really pays.