Island Heritage logo FINANCIAL CALCULATORS HELP

What's an Annuity?

When you decide to retire, you have two main options for receiving your pension income in the Cayman Islands:

  1. Receipt of a periodic payment directly from an individual Retirement Savings Arrangement
  2. Receipt of a periodic income from a life annuity

An annuity is a contract with a life insurance company that provides periodic income for life in exchange for a lump sum amount called "premium".

The premium will be the amount that you have accumulated in your pension and/or savings account through your working years. The periodic amount that you will receive is based on your age, the total premium amount, current interest rates and other assumptions and the guarantees that come with the payments, such as paying the annuity for a minimum number of years.

 Instructions

This calculator will give you an estimate of the premium required for the desired level of income, or the monthly income that a lump sum can provide. Please note that these are estimates only and results will change over time based on changes in interest rates and other assumptions required for pricing annuities. Please reach out to providers of annuity products in the Cayman Islands for an actual annuity quote.

Complete the information and click the Results button to see an estimate of the monthly income provided by the lump sum premium.

Adjust any amount and your results will automatically be refreshed.

Annuitant

Date of birth

Gender
  

Starting Date of Annuity




Annuity Purchase



 Annuity Payment Options

Life annuity with no guarantee — A fixed pension is payable to you for as long as you live and ceases at your death.

Life annuity with five years guaranteed — A fixed pension is payable for as long as you live, but if you die before receiving payments for five years, the pension is payable to your beneficiary for the remainder of the guarantee period.

Life annuity with ten years guaranteed — A fixed pension is payable for as long as you live, but if you die before receiving payments for ten years, the pension is payable to your beneficiary for the remainder of the guarantee period.

Life annuity with cash refund — A fixed pension is payable for as long as you live. Upon your death, your beneficiary will receive the difference, if any, between the total periodic payments made to you and the initial amount paid to purchase the annuity.

Annuity Information


DescriptionValue
Date of EstimateMay 01, 2024
Annuitant 
Date of BirthJanuary 01, 1964
GenderMale
Start Date of AnnuityMay 01, 2024
Annuity Estimate 
Monthly annuity income$1,000
Premium Amount 
Life Only$236,287
Life 5 Years Guaranteed$237,266
Life 10 Years Guaranteed$240,791
Life with Cash Refund$266,528

Annuity Premiums and Income

The table and chart show the estimated lump sum premium for each type of pension that will provide an income of $1,000.00 per month. These annuities have no annual cost-of-living increases.



This estimate is only an illustration and is intended to give you an idea of the cost of purchasing an annuity or the benefit that you will receive with the pension assets you have accumulated. Annuity premium costs vary frequently, so this is just an estimate and no guarantee that it reflects actual current pricing offered by institutions in the Cayman Islands. Please reach out to providers of annuity products in the Cayman Islands for an actual annuity quote.