SPIA/DIA Calculator – Quick Guide
This guide explains how to use the SPIA/DIA Calculator. Quotes are illustrations for comparison; final terms are set by the issuing insurance company’s contract.
What it does
Compares income annuity quotes across carriers for your client’s case.
- Solve for Income: enter the premium and see the income.
- Solve for Premium: enter the target income and see the premium needed.
The calculator labels the quote SPIA (income starts within 12 months of purchase) or DIA (more than 12 months), next to the Income Start Date.
To open it: Calculators → SPIA Calculator. Every field has a ? icon with a definition.
Example: a Life Only quote
- Single Life, then Certain Period
- Certain Period: 0 years, 0 months (this means Life Only)
- Solve for: Income, then enter the premium (e.g. 100,000)
- Client’s birth date, state, gender and Fund Type
- Leave the optional fields alone unless the case needs them, then click Proceed
✅ The summary on the left should say “Certain Period: Life Only.”
How to enter each payout option
| To quote… | Annuity Type | Guarantee Type | Years |
|---|---|---|---|
| Life Only | Single Life | Certain Period | 0 |
| Life with Certain Period | Single Life | Certain Period | 10 (or the period needed) |
| Life with Cash Refund | Single Life | Cash Refund | — |
| Life with Installment Refund | Single Life | Installment Refund | — |
| Joint Life (any of the above) | Joint Life | any | — |
| Certain Only (period certain) | Certain Only | Certain Period | 10 (never 0) |
How the trade-off works: the more death-benefit protection, the lower the payout.
What each option pays at death ($100,000 example)
Example only: the client has received $30,000 in payments, then passes away.
- Life Only: payments stop. No death benefit.
- Certain Period (10 yrs): the beneficiary receives the remaining payments through year 10.
- Cash Refund: the beneficiary receives $70,000 as a lump sum.
- Installment Refund: the beneficiary receives $70,000 as continued payments.
- Certain Only: pays for the set period, whether the client is living or not. Not lifetime income.
Common mistakes
- Certain Only with 0 years. Enter at least 1.
- $0 in the amount box. Switching “Solve for” clears it.
- Months that don’t match the payment frequency. Quarterly allows 0/3/6/9, Semi-Annual 0/6, Annual 0. If unsure, enter 0 months.
- Dates in the past.
- Optional fields set by accident. A.M. Best, ROP, QLAC and COLA narrow results or change the product.
- The PDF says “Deferred” but the screen says SPIA? Go by the screen. A fix is in progress.
Quick answers
- Why does the quote differ from a rate sheet? Quotes are live and depend on age, state, payout option, fund type and dates.
- Why is a joint quote lower? Payments are expected to last over two lifetimes.
- Why was a carrier “Not quoted”? The reason appears next to the carrier, usually age, state or premium limits.
- Tax Amount column? It shows the taxable portion of each payment. Non-qualified money has a cost basis, so part of each payment is tax-free. Clients should confirm their own tax situation with their tax advisor.
- Liquidity: income annuities generally can’t be surrendered. Make sure the client understands this.
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