If the annuitant were to die soon after starting their annuity (and they had not selected a Guarantee Period, Dependant's Pension or Value Protection) their income would stop and no further payments would be made.
A 'Guarantee Period' will ensure that income will continue to be paid until the end of the guarantee period, which is usually 5 or 10 years from their first payment.
Click on the diagram to the left to see how this option works.
Points to Consider
- Choose between 1 and 10 years (maximum), typically most people consider 5 or 10 year guarantees
- The longer the guarantee, the lower the initial income will be
- The annuitant can nominate anyone to receive the income from the guarantee either directly to the annuity provider or through a will
- If they live past the guarantee period their income continues, but when they die nothing will be passed on, the income will just stop (if no other options have been chosen)
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