Why These Rates Vary
SPIA payouts differ between carriers based on several factors. Understanding these helps you make an informed decision.
Mortality Assumptions
Each carrier uses different mortality tables and assumptions about how long you'll live, affecting payout rates.
Investment Returns
Carriers invest your premium differently. Those with higher expected returns can offer better payouts.
Business Strategy
Some carriers price aggressively to gain market share, while others focus on higher profit margins.
Operating Costs
Lower overhead allows some carriers to pass savings to you through higher monthly payments.
Shopping tip: A 5% difference in payout rate means $600 more per year on a $100K premium. Always compare multiple carriers to maximize your lifetime income.