USAA’s Single Premium Immediate Annuity (SPIA) took the title of the most effective straight life annuity with its mix of low fees, immediate payment, financial stability, and a plethora of program options.

With a $0 minimum initial premium, no annual fees, and versatile program options, USAA’s SPIA stands as the most effective straight life annuity. Its “Lifetime Only” option guarantees income for all times, and payments stop if you die because there isn’t any beneficiary with this plan, thus offering higher regular income payments.

USAA has been around since 1922 serving military members and their families with insurance, banking, investments, and retirement products like annuities. The corporate has over $200 billion in assets under management and an AM Best rating of A++. 

USAA offers deferred annuities and immediate annuities:

• Fixed Guaranteed Growth Annuity (a deferred annuity): $20,000 to $50,000 
• Single Premium Immediate Annuity: No minimum

There are not any annual contract fees or upfront fees. The one charge USAA calls out is the ten% IRS penalty, which is just relevant if you happen to make a withdrawal before age 59½.

Current annual return rates range between 1% and a couple of%, but there may be a rider option that elevates your payments by 3% every 12 months. With a straight life policy, there may be ample likelihood to be paid greater than you place into the annuity. Should you outlive your invested premium, the annuity provider continues to pay you, but this time from the provider’s account.

USAA offers three different payout options. You possibly can go for the lifetime-only plan, where you’ll have income for all times, and payment stops if you die. Or you may select a 10-, 15-, or 20-year payment term. Finally, you may design a mix of each. The lifetime and guaranteed time period option helps you get income for all times, and you may add a beneficiary who may proceed to receives a commission if you happen to die before the guaranteed period ends.