You work your whole life to build up a nest egg for retirement. If you cash it in to buy an annuity, you get a guaranteed income for life but you risk getting back less than you put in.
A lot of people don’t realise that many annuities simply stop paying out when you die. But there are some that don’t and can help to provide for your family after you’ve gone.
Even with our standard annuities, you get some reassuring built-in guarantees.
You can’t take it with you, but you could pass it on
If you want an annuity that needn’t die with you, there are two main options.
The first is a joint life annuity, which pays your spouse, civil partner or dependant an income for the rest of their life should they outlive you.
The second is often called a guaranteed option because it guarantees your income for a set period of time even if you die. For example, if you choose a five-year guarantee, your annuity is guaranteed to pay out for at least five years. If you were to die at the end of the first year, the annuity would continue to pay out for the next four years.
A financial cushion for your family
Your spouse, civil partner or dependants could use this money to help with the bills or the mortgage, or put it towards doing the things they enjoy.
Joint life and guaranteed options are usually more expensive than standard annuities, so you get a lower retirement income. For some, the possibility of being able to help alleviate their family’s financial worries at an already difficult time is worth the extra cost. It’s really up to you. Our retirement income calculator gives you an idea of how much adding these options could cost.
Now for the really good news
Whether or not you choose to pay for these optional benefits, all our annuities come with two reassuring built-in guarantees:
- Annuity value protection – if you die within 90 days of buying your annuity, and any dependant named on the policy dies before you, we’ll return your annuity premium to your estate (minus any payments already made).
- A one-year guarantee – if you die in the first year of your policy, we’ll continue to make annuity payments to your dependants or estate for the rest of the first year.
You don’t even have to ask for these guarantees; we’ll give them to you with all our annuities. For your sake, we hope you’ll never need them. But if the worst does happen, it’s good to know that we’re doing what we can to help.