Can I Buy a SPIA Direct?

Are you ready to be the pilot of your annuity research? Set a course for
Are you ready to be the pilot of your annuity research? Set a course for Photo by: ZeroCreatives / Cultura / Getty Images

An SPIA (Single Premium Immediate Annuity) is designed to provide income now. If you'd like to investigate further without a commission minded annuity agent breathing down your back read on.

SPIAs Provide Simple and Guaranteed Payments

You always buy an SPIA for the guarantee. It is a contract with an annuity company that starts when you pay a lump sum of money up front, known as a premium, and the annuity company in turn guarantees to pay you a monthly income for as long as you live.

This eliminates the worry of outliving your money.

The beauty of an SPIA isn’t just the guarantees, but also the simplicity. You make one premium payment, set the start date for your monthly income, and you will receive a check each month until you die. There are no fees in an SPIA contract…ever.

The Benefits of an SPIA Are Simple to Understand, and So Are the Drawbacks

We can narrow this down to two primary issues that face investors:

First, there is no liquidity of the assets you use to purchase your annuity. Because you are putting the burden on the annuity company to guarantee income, they, in turn, require the money to be guaranteed to remain with them. This allows you to receive guaranteed income for your entire life.

Second, there is no market upside opportunity with an SPIA. This is not an investment where you will see a rate of return on your principal. But, even though there will be no fluctuation in your principal, either up or down, you will never stop receiving payments even after your principal has been used.

Your rate of return can be determined only at death. The longer you live, the higher your rate of return. The principal is always protected.

Run Quotes Yourself at

The best way to evaluate if an SPIA works for you is to run a quote to see what the benefit will be based on your specific criteria.

   Historically, the only way to do this was through an agent or dealing directly with an annuity company, with the latter being very difficult. Thankfully, has given you an online source to run your own live quotes and play the “what if” game to determine if the benefits of an SPIA work for you. Once you determine the parameters that fit your situation you can run a final quote which will provide you the names of the annuity companies that can provide a contract based on your specifications. You will then be given the opportunity to purchase the contract direct if you choose to. There is no agent involved who will attempt try to sell you something different than exactly what you want. Try it for yourself.

You Can Use the Direct Model to Choose an Annuity that Fits You

It has taken a while for consumers to digest the direct model, but it is now moving forward with lightning speed. Most everyone has purchased something online, from clothes, technology, car insurance and more. Why not annuities? Because it hasn’t been offered until now. Consumers deserve the right to educate themselves about what annuity works best for them without the traditional hassles of being told what to own.

SPIAs are a valuable tool for planning for immediate income needs now. It is the simplest and oldest annuity designed for the consumer. Think of it a like pension payment that comes to you every month regardless of how long you live. If an SPIA is of interest to you, then learn the simple facts about how it works and how much income you will receive by running your own quotes. That may be the best part.