Lifetime income riders usually charge about 1.0% to 1.5% per year of the benefit base. Most contracts have a surrender period of about 10 years, with charges if you withdraw more than the free amount early. One of our licensed advisors will show exact fees before you decide.

What is guaranteed lifetime income?

Q: What is guaranteed lifetime income?

Guaranteed lifetime income is a contractual monthly payment that lasts as long as you live. With a fixed indexed annuity and a lifetime income rider, you deposit savings once (or over time), wait until your chosen start age if you want, then turn on a set monthly check. Payments can continue even if the account value runs to zero, as long as you stay within the rider rules. The guarantee is backed by the issuing insurer's claims-paying ability, not by the FDIC.

Q: How is it different from the 4% rule?

The 4% rule is a planning rule of thumb for withdrawing from investments that can fall in value. Guaranteed lifetime income is a contractual paycheck from an insurer. Markets do not cut the rider payment; your longevity risk is transferred to the insurance company. You typically give up some liquidity during a surrender period in exchange for that guarantee.

Q: How much income can my savings buy?

It depends on your age, state, amount, and when income starts. In a live October 16, 2026 quote, a 60-year-old man in Texas with $250,000 starting income at 65 was quoted about $2,510 per month for life from an AM Best A-rated insurer. A 65-year-old woman in Florida with $100,000 starting at 70 was quoted about $1,093 per month. A 55-year-old man in California with $500,000 starting at 67 was quoted about $7,286 per month from an A+ rated insurer.

Q: Why don't you show company names?

We show each insurer's AM Best financial strength rating (A-, A, A+) so you can judge strength. One of our licensed advisors shares the company and product on a short free call for people with $100,000 or more set aside for retirement income.

Short answer: it is a contractual monthly paycheck that lasts as long as you live. A common way to create it is a fixed indexed annuity with a lifetime income rider: you set aside savings, choose when income starts, and the insurer pays a set amount every month—even if the account value later hits zero—backed by that insurer's claims-paying ability.

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How it works in plain English

You deposit savings (often an IRA, 401(k) rollover, or non-qualified cash) into a fixed indexed annuity.
Interest is linked to an index with a 0% floor—you do not lose principal to market drops (product rules and fees still apply).
An income rider builds a benefit base used to calculate your future paycheck.
At your start age, you turn income on and receive a monthly amount for life (single life or joint, depending on the contract).

What it is—and is not

Is: a contractual payment stream for life from an insurance company.
Is not: FDIC insurance, a bank CD, or a stock-market withdrawal plan.
Is not: a promise that every insurer pays the same rate—quotes differ by age, state, amount, and start date.

Live examples (October 16, 2026)

These are real live quotes run the same day this page was published. We show AM Best ratings, not carrier names.

Age 60, male, Texas, $250,000, income at 65 → about $2,510/month for life (AM Best A); next options about $2,418 (A+) and $2,401 (A).
Age 65, female, Florida, $100,000, income at 70 → about $1,093/month for life (AM Best A).
Age 55, male, California, $500,000, income at 67 → about $7,286/month for life (AM Best A+); next options about $7,233 (A) and $6,924 (A).

Rates change. These examples are not offers. Run your own numbers for an exact figure.

Fees and tradeoffs

Income riders typically cost about 1.0–1.5% per year of the benefit base. Most contracts have a surrender period around 10 years. In return, you transfer longevity risk to the insurer and get a paycheck you can plan bills around. Many people use guaranteed income for essentials and keep other savings flexible—see the Retirement Gap Check.

Who this quote tool is for

Anyone can run a free quote. Booking a call with one of our licensed advisors is for people with at least $100,000 set aside for retirement income. Products are offered through OOC Unlimited (NPN #20972686), licensed in all 50 states and DC.

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Plain-English FAQ

What is guaranteed lifetime income?

A contractual monthly payment that lasts as long as you live, often created with a fixed indexed annuity and a lifetime income rider. Payments can continue even if the account value runs to zero, within rider rules. The guarantee is backed by the insurer's claims-paying ability.

How is it different from the 4% rule?

The 4% rule is a withdrawal guideline for investments that can fall. Guaranteed lifetime income is a contractual paycheck; markets do not cut the rider payment.

How much income can my savings buy?

It depends on age, state, amount, and start age. Live October 16, 2026 examples above show roughly $2,510/month on $250,000 (age 60→65) and $1,093/month on $100,000 (age 65→70). Get your own free quote for an exact number.

Are there fees?

Riders usually cost about 1.0–1.5%/year of the benefit base, with surrender periods around 10 years. One of our licensed advisors will show exact fees before you decide.

Why don't you show company names?

We show AM Best ratings so you can judge strength. One of our licensed advisors names the company on a short free call.