A Guaranteed Period
As the name suggests, lifetime annuities are paid for the rest of your life. If you die shortly after buying the annuity with a guarantee period, the annuity will continue to be paid for a minimum period. Typical guarantee periods are for five or 10 years.
- Pros: A guarantee period provides peace of mind that, if you die within the guarantee term, your dependants will receive a guaranteed income for the remainder of the guarantee term.
- Cons: The guarantee only applies for a limited period and your income will be lower if you choose to add a guarantee period.