You are comparing SPIA payout options
See how single-life income compares with 50%, 75%, and 100% joint-survivor income.
StartStep 1 of 4
One protection goal · three possible structures
Measure the hidden price of survivor protection
A 100% joint-life SPIA protects either survivor automatically, but it reduces the income paid while both spouses are alive. A single-life SPIA may pay more, but a separate policy must be approved, maintained, and large enough to do the job.
The calculator does not assume that joint life or separate insurance is universally better. It tests the actual income reduction, life-insurance premium hurdle, survivor-income target, and death-benefit adequacy.
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Check the box before starting the calculator.
Step 1 of 3
Define the couple and the SPIA comparison
Use one premium for every payout option. The “primary annuitant” is the person whose single-life SPIA and separate life insurance are being tested.
Enter $25,000–$10,000,000.
Used only for annuity estimates.
Used for joint and replacement-SPIA estimates.
Assumes the primary annuitant dies first.
SPIA income source
Step 2 of 3
Set the survivor goal and enter actual life-insurance pricing
A life policy pays a lump sum. A joint SPIA continues monthly income. The calculator estimates how much lump sum may be needed to purchase the survivor-income target using the spouse’s age at the selected death checkpoint.
The benchmark compares each strategy against the income the 100% joint option would continue.
Do you have an actual life-insurance quote?
Policy paired with the single-life SPIA
Version 1 uses a level guaranteed death benefit. A scheduled-decrease policy can be tested after a carrier produces the exact benefit schedule. Do not treat a nonguaranteed projection as a guarantee.
Planning directionPlanning estimates used
Your spouse-protection comparison
Three ways to structure the same protection goal
Current spendable income is the annuity payment minus any entered life premium. Survivor-income adequacy is tested at the selected primary-death age.
The life-insurance premium hurdles
These are the monthly premiums a separate policy must stay below to preserve at least as much current spendable income as the 100% joint-life option.
| Strategy tested | Annuity income before life premium | Maximum monthly life premium before falling below 100% joint income | Entered life premium | Current-income result |
|---|
How the replacement need changes as the couple ages
The chart estimates the lump sum needed to purchase the survivor-income target for the spouse at each future age, using today’s planning rate. It is a planning need curve—not a policy illustration or guaranteed future quote.
Estimated death benefit needed
Single-life path: full replacement need50% joint path: remaining replacement need
Test another primary-death age
Primary dies at age 75
The spouse’s attained age and estimated replacement-SPIA cost update automatically.
Replacement-SPIA sensitivity
The future SPIA payout available to the surviving spouse is unknown. This table shows how a payment 15% below or above the planning estimate changes the required death benefit.
| Surviving-spouse SPIA assumption | Payment per $100,000 | Death benefit needed: single-life path | Death benefit needed: 50% joint path |
|---|
Estimated SPIA payments or entered quote comparison
75% joint life is included to show that the decision is not limited to an all-or-nothing choice.
| Payout structure | Initial monthly income | Income after first death | Monthly reduction versus single life | Annual reduction versus single life |
|---|
What the comparison does—and does not—make equivalent
100% joint life protects either survivor
The payment continues if either spouse dies first. A separate policy on the primary annuitant protects the spouse only if the insured primary dies while the policy is in force.
A death benefit is not automatic lifetime income
The surviving spouse must manage, invest, or annuitize the life-insurance proceeds. The calculator estimates a replacement SPIA using current assumptions, but no future payout is guaranteed today.
Reduced-survivor contracts require contract review
A 50% or 75% joint contract may reduce after either first death or use a contingent-survivor design. The insurer’s contract determines whose death triggers the reduction.
Underwriting is part of the strategy
Do not irrevocably buy a single-life SPIA based on an assumed life-insurance approval. The policy should be issued, reviewed, accepted, and in force first.
Assumptions and limitations
Calculation assumptions
- All SPIA comparisons use the same premium and level monthly payments beginning approximately one month after purchase.
- The planning estimator uses Society of Actuaries 2012 Individual Annuity Mortality basic tables, a simplified mortality-improvement adjustment, the Treasury benchmark plus a model spread, and a simplified expense allowance.
- 100%, 75%, and 50% joint estimates assume the selected percentage applies after the first death and payments end after the second death.
- The replacement-death-benefit estimate assumes the surviving spouse uses the proceeds to purchase a new straight-life SPIA at the selected checkpoint age under the tool’s current pricing assumptions.
- The survivor-income target remains level. Inflation, taxes, policy cash value, insurer financial strength comparisons, and investment returns on life proceeds are not modeled.
- The life-insurance comparison uses only the guaranteed values entered. It does not estimate insurability, underwriting class, premiums, riders, or policy values.
Guarantees, taxes, and professional review
- SPIA guarantees depend on the claims-paying ability of the issuing insurer.
- Life-insurance guarantees depend on the issuing insurer and exact premium timing required by the contract.
- A policy lapse, loan, withdrawal, missed premium, or rider use may reduce or eliminate the death benefit.
- Actual SPIA quotes may be materially higher or lower than the planning estimate. The ±15% rows are illustrations, not a predicted market range.
- Tax treatment differs for qualified retirement money and after-tax savings. This version deliberately compares nominal pre-tax cash flows.
- Decision Tree Insurance, as a broker, represents its client to find the best rate in the market from top-rated insurance companies in the client’s state.
Educational comparison only. It is not a recommendation, insurer quote, tax opinion, legal opinion, or guarantee of suitability.