Guaranteed income

SPIA immediate annuities: a guaranteed income solution for retirement

A Single Premium Immediate Annuity turns a lump sum into a guaranteed income stream that begins right away. Here is what it is, how it works, and who it fits ... so you can position it with confidence for the clients who need it.

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01 · Overview

Turn savings into a predictable paycheck

A Single Premium Immediate Annuity, or SPIA, is a straightforward income tool. A client pays a one-time premium and, in exchange, receives regular guaranteed payments that start immediately or within a short period. For anyone who wants to convert savings into a reliable income stream in retirement, it is one of the clearest solutions on the shelf.

By David Racich, Owner and CEO of Brokers Alliance Updated July 2025

02 · What it is

What is a Single Premium Immediate Annuity?

A SPIA is an insurance product that lets a client make a lump-sum payment in exchange for regular, guaranteed income payments that begin immediately or within a short period of time. It is built for individuals who want to convert their savings into a predictable, reliable income stream in retirement.

LS Lump-sum payment

The client pays a one-time, lump-sum premium to the annuity provider.

II Immediate income

Payments typically start within 30 days of the premium being paid.

GP Guaranteed payments

A SPIA guarantees a fixed income for a specified period or for life, depending on the terms of the contract.

03 · How it works

How a SPIA actually pays out

The client makes a single lump-sum payment to the insurance company. In return, the insurer agrees to provide regular income payments for the agreed-upon term, and those payments typically begin within a month of the initial payment. The size of each periodic payment depends on a handful of factors the insurer uses to run the numbers.

The size of the lump-sum premium The age and gender of the annuitant The length of the payment period ... lifetime or a set number of years Current interest rates

04 · Who benefits

The clients a SPIA fits best

SPIA immediate annuities are ideal for people who want income they can count on. Three profiles come up again and again.

01 Nearing or already in retirement

A SPIA can provide immediate income without having to wait years to start receiving benefits.

02 Those seeking predictable income

A reliable income stream to meet living expenses or cover specific needs in retirement.

03 Those holding a lump sum

A one-time amount ... from the sale of a home, a 401(k) payout, or an inheritance ... can be turned into a guaranteed income.

Ready to put guaranteed income in front of your clients?

Brokers Alliance has been independently owned since 1982 and works with agents, agencies, IMOs, FMOs, and BGAs. Get contracted and we will help you position SPIA solutions with confidence. Call (866) 872-9394 or reach out below.

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