Actuarially fair SPIA and DIA price calculator
This calculator computes actuarially fair prices for Single Premium Immediate Annuities (SPIAs) and Deferred Income Annuities (DIAs). An annuity is actuarially fair if the price paid for it equals the expected present value of the income stream it provides. This calculator does not provide SPIA or DIA quotes, but it does allow you to ballpark such quotes, and help you decide if a quote you have already received is a good deal.
Quotes need not be actuarially fair. Costs, including sales, marketing, administrative, and bond default costs, profit margins, and taxes all reduce the Money's Worth Ratio (MWR). On the other hand the MWR may increase as a result of insurance companies investing premiums in assets more risky than the assumed bonds.