Life Only vs. Period Certain & Life Annuities: Choosing the Right Guaranteed Payment Option for Kaiser Employees
For Kaiser employees, planning for retirement often includes maximizing your benefits and ensuring a stable income stream. One key decision is choosing the right type of annuity. Two popular options are Life Only annuities and Period Certain & Life annuities. Understanding the differences can help you make the best choice for your financial future.
What is a Life Only Annuity?
A Life Only annuity provides guaranteed payments for the rest of your life. Once you start receiving payments, they continue until your passing, no matter how long you live.
Benefits for Kaiser employees:
- Guaranteed lifetime income to complement your retirement benefits
- Higher monthly payments compared to annuities with additional guarantees
Considerations:
- Payments stop at death—no money goes to heirs
- Not ideal if leaving a legacy or covering potential early-life expenses is a priority
Life Only annuities are often suited for retirees looking to maximize monthly income and have confidence that other financial needs for heirs are covered elsewhere.
What Is a Period Certain and Life Annuity?
A Period Certain & Life annuity guarantees payments for a set number of years, such as 5, 10, or 20 years. If you pass away during the guaranteed period, your designated beneficiary continues to receive payments for the remainder of the term. Otherwise, the payments continue for the remainder of the participant's life.
Benefits for Kaiser employees:
- Ensures a financial legacy for your loved ones
- Provides predictable income even if life circumstances change
Considerations:
- Monthly payments are typically lower than Life Only annuities
- Payments stop at the end of the period for beneficiaries, payments continue for life for the participant
Life Only vs. Period Certain & Life: Key Differences
Some retirees choose a Life with Period Certain annuity, which combines both benefits: lifetime income plus a guaranteed term for beneficiaries.
Why Kaiser Employees Should Consider Their Options
Kaiser employees often have access to pension plans, 401(k) contributions, and other retirement benefits. Adding an annuity to your retirement plan can:
- Reduce the risk of outliving your savings
- Provide predictable monthly income
- Complement existing retirement benefits
Choosing the right annuity depends on your retirement goals, health, and family needs.
At Bridgetown Wealth Management, we help Kaiser employees design retirement income strategies that fit their unique situations. By understanding options like Life Only and Period Certain & Life annuities, you can ensure financial security and peace of mind in retirement.
Ready to plan your retirement income? Contact us today to review annuity options tailored for Kaiser employees.
Kaiser Permanente is not affiliated with or endorsed by LPL Financial or Bridgetown Wealth Management.
*Guarantees backed by the claims paying ability of the insurer