Annuity Payout Comparison
Compare nominal payout totals under caller-supplied durations.
Description
An annuity payout comparison totals nominal payments over caller-specified durations.
An annuity payout comparison totals nominal payments over caller-specified durations. It does not price the uncertain duration of a lifetime.1
Compare nominal payout totals under caller-supplied durations.
When to use Annuity Payout Comparison
Use this tool to compare nominal payout totals under caller-supplied durations.
Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.
How to use Annuity Payout Comparison and understand its results
- Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.
- Enter periodCertainMonthlyPayment, periodCertainMonths, lifeMonthlyPayment, assumedLifeMonths using the field table and calculation rules, then run the tool.
- Read periodCertainTotal, assumedLifeTotal, higherProjectedTotal. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| periodCertainMonthlyPayment | Period-certain monthly payment (currency/month) | number; minimum: 0 | Required |
| periodCertainMonths | Period-certain months (months) | integer; minimum: 1 | Required |
| lifeMonthlyPayment | Life monthly payment (currency/month) | number; minimum: 0 | Required |
| assumedLifeMonths | Assumed life-payment months (months) | integer; minimum: 1 | Required |
Enter nonnegative monthly payments and positive integer durations. Return both totals and period-certain, life or tie label.
periodTotal=monthlyPayment×months; lifeTotal=lifeMonthly×assumedLifeMonths Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| periodCertainTotal | Period-certain total (currency) | number; minimum: 0 |
| assumedLifeTotal | Assumed life total (currency) | number; minimum: 0 |
| higherProjectedTotal | Higher projected total | string; one of "period-certain", "life", "tie" |
{
"input": {
"periodCertainMonthlyPayment": 1000,
"periodCertainMonths": 120,
"lifeMonthlyPayment": 800,
"assumedLifeMonths": 180
},
"output": {
"periodCertainTotal": 120000,
"assumedLifeTotal": 144000,
"higherProjectedTotal": "life"
}
}Limitations and assumptions
No survival probabilities, present value, inflation, death benefit or product suitability is modeled.
Numeric inputs must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use SPIA Payout: Calculate modeled SPIA payout from a caller-supplied payout rate. For a complementary task, use Annuity Start Classifier: Classify caller-observed indicators for annuity start classifier while preserving mixed and insufficient evidence.
References
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Annuity Payout Comparison — tool.io
Similar or alternative tools
- SPIA Payout
Calculate modeled SPIA payout from a caller-supplied payout rate.
- Annuity Start Classifier
Classify caller-observed indicators for annuity start classifier while preserving mixed and insufficient evidence.