Retirement Income Made Easy: Understanding Lifetime Income Products
What is a Lifetime Income Stream Product?
The basic concept of a lifetime income stream product is where, in exchange for a lump sum paid in by an investor, the product provider (a life insurer or a superannuation fund), pays an income each year, for the life of the investor or, if there is a spouse beneficiary, for the life of the last survivor of the two individuals.
In doing this the provider assumes the expected lengths of the two lives and pays a regular stream of income made up of part of the original investment plus investment earnings.
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