Buying a single-life immediate annuity can give you a substantial income stream but may not provide for anyone else. You could die the next day and the payments from the insurance company will cease.
If this is a concern, consider these alternatives:
Joint-and-survivor annuities. These cover two people (often a married couple), so payouts will continue as long as either is alive. Some joint-and-survivor annuities have a level payout. Others drop the payout, perhaps by 50 percent, after the first death.
Guaranteed annuities. These annuities pay for a minimum period, no matter how long you live.
Suppose, for example, you buy an immediate annuity and specify a five-year period certain. If you live for 30 years, you’ll get 30 years of annuity payments. However, if you die after two years, your beneficiary will receive payments for the remaining three years of the contract.
In any case, though, the monthly payment will be lower than the payment on a single-life annuity.