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Single-life annuities can continue legacies even without heirs

On Behalf of | Jun 15, 2024 | Estate Planning |

For some people, leaving a legacy is synonymous with passing on one’s estate to heirs. This might leave those without children or close relatives wondering what will happen to their wealth. Is there a need for an estate plan if there are no heirs to receive one’s assets?

Individuals without children can leverage a single-life annuity as a powerful estate planning arsenal. People without closely-related loved ones can use this tool to help guarantee income throughout their lifetime while simultaneously supporting causes that are close to their hearts. Essentially, a single-life annuity offers a compelling solution that helps ensure financial stability during one’s lifetime while also contributing to a broader legacy in meaningful ways.

What are single-life annuities?

These entities are accessible through insurance providers. Individuals activate these packages with a lump sum payment. In return, the insurance provider facilitates a steady stream of income throughout the policyholder’s lifetime. Many people are incentivized to explore single-life annuities because of their higher interest earnings compared to conventional savings accounts.

Financial security without heirs

Even for people who don’t have heirs, the possibility of outliving their savings can be pressing. Luckily, single-life annuities provide a level of certainty that some other investment options may lack. Since annuities don’t fluctuate with the changing market conditions, individuals don’t have to worry about not affording their lifestyle. People who choose this investment particularly enjoy their retirement and golden years. A sense of peace may come with knowing finances are sorted all the days of one’s life, especially as a senior citizen.

A lasting legacy through charitable contributions

The primary focus of single-life annuities is, of course, the certainty they guarantee. However, a noble incentive exists for those who want to leave behind a lasting legacy. Charitable gift annuities present a unique opportunity for individuals to contribute to organizations and charities that are close to their hearts. Individuals can also designate a charity as the beneficiary of their estate and be rest assured their contribution will make a difference in the world.

Single-life annuities are an excellent financial tool for security and stability in retirement. For those without heirs, it offers additional advantages by providing opportunities to continue their legacy through charitable contributions and philanthropic endeavors. By carefully planning and utilizing these options, it is possible to create a legacy that transcends personal circumstances and enriches the broader community.