Annuity Basics: What Is A SPIA?
January 13, 2021 by David Rodeck
A single premium immediate annuity (SPIA) is one of the simplest types of annuity contracts. With a SPIA, you make a single large deposit with an annuity company and your monthly payments begin immediately. While SPIAs are easy to understand, buying them requires some foresight. You purchase a SPIA with a single lump sum, instead of making incremental payments over time as with some other types of annuities.
Wink’s Note: They classified the large upfront financial commitment of a SPIA as a “large upfront cost.” It isn’t a cost but is a good job of trying to make annuities sound expensive. Other than that, this was pretty accurate. Maybe not relevant right now, but accurate. -sjm