Message Font: Serif | Sans-Serif
No. of Recommendations: 1
John -

I'm sorry for your loss.

In spite of the "Fool's disdain for annuities", it's precisely this kind of situation that they are designed for. The idea behind the immediate annuity is for an individual to swap a lump sum for a guaranteed income stream, for life, a period certain, or a combination of both. I usually suggest the third option so that a fuller payout is assured regardless of the actual lifespan of the annuitant.

If you want to explore this idea (without obligation) call a few reputable insurance companies to get quotes on the payout you propose (i.e. lifetime of mom or 10 years, whichever is longer) with the lump sum she can dedicate. Be sure to look for financially strong companies. You'll note the total payout will not be reflective of much gain/profit, but your purpose here is to assure a reliable & guaranteed income.

Hope this helps. Good luck. Regards, PP
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.