This is an option that allows the annuitant to choose when they would like the dependant's pension to start, if they have opted for both a dependant's pension and the guarantee period.
Should they die during the guarantee period, dependants annuity payments can start either at the end of the guarantee period or from the date of the annuitant's death.
If the annuitant chooses from the date of their death, it will mean that, should the annuitant die during the guarantee period, their surviving dependant would receive two incomes for the remainder of the guarantee period. This is called “with overlap”, as the payments would "overlap".
Click on the diagram above to see an illustration of how this works.
Points to Consider
- Does the surviving dependant need two incomes should the policyholder die soon after the policy is started?
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