Annuities are periodic payments that continue until the recipient's death and are therefore tied to the annuitant's life expectancy. They are acquired through lump-sum payments (e.g., selling a house on an annuity basis) or ongoing contributions (deferred annuity). Statistics on the life expectancy of the population serve as the basis for calculating annuities.
A joint annuity (also called a life annuity) is taken out on the lives of two people, e.g., a married couple, business partners, etc. If the annuity is taken out until the death of the last surviving person, it is called a longer-life annuity. In this case, a fixed annuity is paid until the death of one person, after which the second person receives the annuity (or a portion thereof) until their death. With a shorter-life annuity, the annuity is only paid until the death of one person.
The present value is the amount to be used for the annuity, e.g., the proceeds from the sale of a property or accumulated savings. The present value can either be calculated if the annuity amount is known, or it can be entered in the corresponding field.
Interest Rate: Enter the agreed interest rate in the corresponding field.
Payment Method: Select the payment method for the annuity.
Joint Annuity: A joint annuity can be structured as either a 'longer life' or a 'shorter life' annuity. A shorter life annuity means that the annuity payments cease upon the death of one person. A longer life annuity means that all or part of the annuity continues until the death of both persons.
Details of the Joint Persons: Select the gender of the persons and enter their age at the start of the annuity. If you wish to calculate a longer life annuity, also enter the percentage (0 to 100) of the annuity that should continue to be paid if one person dies. The percentage can be different for each person.
Joint Annuity:If you have entered the present value, the annuity will be calculated. If you wish to receive a specific annuity amount, enter it. The present value required to generate this annuity will be calculated.
Annuity of the First (Second) Person:Calculated based on the information provided and cannot be changed.
Calculate:Click 'calculate' to calculate the annuity.
Note: These calculations are based on the 2008/2010 German mortality table from the Federal Statistical Office Wiesbaden or the 2000/2002 mortality table from Statistics Austria. Mortality tables reflect the average life expectancy of a country's population and vary from country to country. Insurers use their own mortality tables, some of which assume significantly higher life expectancies. The results vary depending on the mortality tables used. No liability is assumed for the accuracy of these calculations!
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