Two A-rated insurers can look at the same 65-year-old man, the same $250,000 and the same payout option, and one will pay $255 a month more than the other — every month, for life. In our August 2026 survey of 8 A-rated carriers, the best-to-lowest gap on identical single premium immediate annuity (SPIA) contracts runs 12–15% at ages 65–75. That is not a rounding error; it is the difference between a good retirement decision and an expensive one. This guide shows exactly how big the spread is, why it exists, and how to compare immediate annuity quotes so you are looking at like for like.
How Big the Spread Really Is
The figures below are the highest and lowest quotes among our 8 carriers for a man buying single life with a 5-year period certain, per $100,000, from actual carrier quote surveys (August 2026). We scale them to $250,000 and $500,000 because that is where most of our clients buy. The 20-year column is simply the monthly gap times 240 payments — no growth, no inflation, just the raw shortfall of picking the wrong company.
| Age (male) | Premium | Best quote / mo | Lowest quote / mo | Gap / month | Gap / year | Gap over 20 years | Spread |
|---|---|---|---|---|---|---|---|
| 65 | $100,000 | $675 | $573 | $102 | $1,224 | $24,480 | 15% |
| 65 | $250,000 | $1,688 | $1,433 | $255 | $3,060 | $61,200 | 15% |
| 65 | $500,000 | $3,375 | $2,865 | $510 | $6,120 | $122,400 | 15% |
| 70 | $100,000 | $751 | $654 | $97 | $1,164 | $23,280 | 13% |
| 70 | $250,000 | $1,878 | $1,635 | $243 | $2,910 | $58,200 | 13% |
| 70 | $500,000 | $3,755 | $3,270 | $485 | $5,820 | $116,400 | 13% |
| 75 | $100,000 | $873 | $769 | $104 | $1,248 | $24,960 | 12% |
| 75 | $250,000 | $2,183 | $1,923 | $260 | $3,120 | $62,400 | 12% |
| 75 | $500,000 | $4,365 | $3,845 | $520 | $6,240 | $124,800 | 12% |
Best and lowest of 8 A-rated carriers, male, single life with a 5-year period certain, income starting one month after purchase, August 2026. Larger premiums scale linearly. See the full carrier-by-carrier tables on our male, female and joint rate pages, or the summary at best SPIA rates.
Other published SPIA comparisons report carrier-to-carrier differences of 5–10% and 10–15% for the same premium and age; one May 2026 run for a 65-year-old man with $250,000 found the top and bottom carriers $72 a month apart. Our spread sits at the wider end of that range this month, which is exactly why we survey rather than assume.
No Single Carrier Wins Everywhere
The natural response is "just tell me who pays the most." The honest answer is that it depends on your age, sex and whether the contract covers one life or two. Here is who takes first place in our August 2026 survey at each age we publish:
| Age | Best for men | Best for women | Best for couples (joint, 100% survivor) |
|---|---|---|---|
| 55 | New York Life ($595/mo) | New York Life ($581/mo) | New York Life ($552/mo) |
| 60 | New York Life ($627/mo) | New York Life ($612/mo) | Western & Southern ($567/mo) |
| 65 | Athene ($675/mo) | Western & Southern ($637/mo) | Western & Southern ($587/mo) |
| 70 | Nationwide ($751/mo) | New York Life ($699/mo) | Western & Southern ($640/mo) |
| 75 | Nationwide ($873/mo) | New York Life ($810/mo) | Western & Southern ($722/mo) |
| 80 | Nationwide ($1,041/mo) | Nationwide ($962/mo) | Western & Southern ($837/mo) |
Per $100,000, 5-year period certain, August 2026. Joint = both spouses the same age, 100% to the survivor.
4 different carriers (New York Life, Western & Southern, Athene, Nationwide) hold a first-place cell in that table, and the ranking reshuffles most months when carriers reprice. A company that is best for a 60-year-old woman may sit fifth for a 75-year-old man. That is why "which carrier is best?" is the wrong question and "which carrier is best for this contract, quoted today?" is the right one.
Why Quotes Differ So Much Between A-Rated Carriers
An immediate annuity is priced from four inputs, and each carrier sets them independently:
- Investment yield. The insurer invests your premium mostly in long corporate bonds, private placements and mortgages, and it prices your payments off the yield it expects to earn. Two carriers with different portfolios and different views on rates will price the same $250,000 differently. This is also why quotes move month to month — see the rate trend.
- Mortality assumptions. Each company uses its own experience tables. A carrier that expects its annuitants to live longer must pay less per month; one with a younger book or a more aggressive assumption can pay more. This is why one carrier can lead at 65 and trail at 80.
- Capacity and appetite. Insurers decide how much income-annuity business they want each quarter. When a carrier is "open," it sharpens pricing to win volume; when it has hit its target, it quietly drops toward the back of the pack. The same company can be first in March and sixth in June.
- Ratings and reserves. All 8 carriers we survey are rated A or better by AM Best, but an A++ company with conservative reserving may price a little below an A+ company that runs leaner. Within the A range the difference is modest; the point is not to chase the last few dollars into a carrier you would not otherwise trust for 25 years. Our carrier comparison covers ratings and history.
State premium taxes, product minimums and distribution costs add smaller wrinkles. None are visible in the quote itself, which is why you have to control the inputs.
The Hold-Constant Checklist
Every quote you compare must match on each of the items below. If one does not, you are not comparing carriers — you are comparing contracts.
- Same purchase date and income start date. Quotes are keyed to the day they are run and to when the first payment lands. Our tables assume income begins one month after purchase. A quote from last week against one from today is already an unfair fight; a quote deferring the first check six months is a different product.
- Same payout option. Life only, 5-year certain, 10-year certain, cash refund, or joint with 100%, 75% or 50% to the survivor — each is priced differently, and carriers do not price the differences identically. Pick one structure and quote it everywhere. Our payout options guide explains the trade-offs.
- Premium net of state premium tax. Six states tax non-qualified annuity premiums (table below). The carrier deducts the tax before crediting your premium, so a $250,000 California quote is really a $244,125 contract. Make sure every quote uses your actual state of residence.
- Qualified vs. non-qualified. IRA money is exempt from premium tax in the six taxing states (California charges 0.5%), some carriers have different issue-age ranges for qualified money, and the tax treatment of your payments differs completely — see how annuities are taxed. Quote the right bucket.
- Quote lock window. Most carriers hold a quote 7–14 days (a few for one day only), then lock the rate for 30–60 days after receiving a signed application while your funds transfer. The mechanics vary: some carriers lock for a short initial window and extend it if the application arrives before the money; others simply set a funding deadline for transferred money (often longer in New York). If rates rise during the transfer, many carriers pay the higher rate. Ask for the window in writing.
- Minimum premium. Typical minimums are $10,000 or $25,000 depending on carrier and payout option, so a small contract has fewer bidders. Very large premiums (often above $1–2 million) need home-office approval and are priced individually.
- Issue-age limits. Most carriers issue lifetime options to 80–90 and period-certain-only contracts to 95, but several restrict life-only to age 80 and some cap qualified contracts at 89. At 80+ the shortlist shrinks and the spread can widen. See our best age guide.
- COLA availability and pricing. Fixed annual increases of 1–5% are offered by most carriers, but a 3% COLA cuts the starting payment by roughly 17–20% (Insurance Geek's SPIA guide puts the reduction at about 20%; modeled at 18%, a $675 level quote at 65 becomes ~$554 with 3% increases), and each carrier prices the same COLA differently. Compare with the COLA on or off everywhere — never mixed.
- Guaranty-association limit. Most states cover a present value of $250,000 of annuity benefits per owner, per insurer; several go to $300,000 or $500,000 (see your state page). Contracts with the same insurer share one limit; different insurers get separate limits. This is informational only, but it is a reason larger premiums are often split.
States That Tax Non-Qualified Annuity Premiums
| State | Non-qualified premium | Qualified (IRA/401k) |
|---|---|---|
| Nevada | 3.50% | 0% |
| California | 2.35% | 0.50% |
| Colorado | 2.00% | 0% |
| Maine | 2.00% | 0% |
| South Dakota | 1.25% (0.08% above $500,000) | 0% |
| Wyoming | 1.00% | 0% |
Source: NAIC "Premium Taxation of Annuities" chart (Dec 2025). Florida has a nominal 1% that insurers do not pass on in practice; West Virginia's 1% tax was discontinued for tax years beginning January 1, 2021 (W. Va. Code §33-3-15) though many websites still list it. All other states and DC: none.
How a Multi-Carrier Survey Works
Nobody phones eight insurers one at a time. Licensed agents run a single survey through an industry quote exchange (CANNEX is the largest, feeding comparative SPIA, DIA and QLAC quotes to hundreds of broker-dealers, banks and marketing organizations). We enter one set of inputs — date of birth, sex, state, premium, qualified or not, payout option, income start date — and every participating carrier returns its price for that exact contract on the same day. The result is a ranked list on one page.
That is what our published tables are: a survey run in August 2026 for real clients across 8 A-rated carriers, read on the same basis. When you request a quote we run the same survey for your specifics, and if a carrier outside the eight is competitive for your profile it goes on the list too. A live survey also does two things a website table cannot: it prices your exact date of birth rather than a whole-year age, and it is dated, so you know when the lock clock started.
Red Flags When Comparing Quotes
- Different run dates. A quote from three weeks ago is stale. Rates change monthly and sometimes weekly; insist every quote in the comparison carries the same date.
- The payout option quietly changed. The most common trick, intentional or not: a life-only quote sitting next to 10-year-certain quotes. Life only will always "win." Check the option line on every illustration.
- Only one or two carriers. A captive agent can only sell the company that employs them. If a comparison has fewer than five names, ask what was left out and why.
- A single "rate" quoted as a percentage. SPIAs pay dollars per month, not a yield. A quoted "6.5% payout rate" is just $6,500 a year per $100,000 and includes return of your own principal. Compare monthly dollars on the same premium — our calculator converts either way.
- No state, no validity date, no funding deadline. A Nevada resident quoted as if in Arizona will be disappointed at issue, and a legitimate quote always states how long it is good for. If those are missing, ask.
- Guaranty coverage used as a sales pitch. Most states prohibit agents from advertising the guaranty association to induce a sale. If it is being used to wave off a weak rating, walk away.
What to Send Us for an Apples-to-Apples Quote
To run one clean survey across every carrier, we need seven things:
- Date of birth for each annuitant (spouse too, for joint quotes)
- Sex of each annuitant
- State of residence
- Premium amount, and whether it is qualified (IRA/401k) or non-qualified (savings, CD, brokerage)
- Payout option you want compared — or ask for two or three side by side (we usually show life only, 10-year certain and cash refund, or 100% and 50% joint for couples)
- When you want the first payment (one month out is standard)
- Whether you want a COLA quoted, and at what percentage
You will get back a dated, ranked comparison from 8 A-rated carriers on identical terms, with each carrier's quote validity and funding window noted. No commitment, and the quote is free.
Bottom Line
SPIA pricing is not standardized, and A-rated carriers routinely quote 12–15% apart on the same contract — on $250,000 at 65, roughly $3,060 a year for life. Closing that gap takes a few pieces of information and one survey. Hold every input constant, insist on same-day quotes across at least five carriers, understand the lock window and your state's premium tax, and take the best offer for your contract rather than the carrier with the best name.
Request a free multi-carrier SPIA quote and we will run the survey for your exact age, state and payout option. Want to size the premium first? Try our immediate annuity calculator or see what $250,000 or $500,000 pays per month at your age.
