Guaranteed Payment Period

The longer the guarantee you take the lower the level your pension will commence.

All annuities we supply are payable for your lifetime.  If you choose a spouses pension, and pre-decease them, their pension will be payable for their lifetime.

Q.  So why have a guaranteed period?

A.  If a single person purchased a no guarantee annuity and died after just six months no further payments would be made to the deceased's estate.  

The same goes for a married couple who have opted for a spouses pension if they were both to die the payments stop.

By selecting a guaranteed period the insurance company must pay the annuity for the whole of the guaranteed period (to the estate) even if those being paid it have died.

If the source of your money is Protected Rights you may only choose no guarantee or 5 year guarantee.

Example.

If an individual were to purchase an annuity with a five year guarantee and opt for a spouses pension of 50% then die in year three, the spouse would receive the full pension until the end of the fifth year.  At this time it would reduce to 50% and be payable to the spouse for life.