Protection For Dependants

A conventional lifetime annuity is normally set up to provide an income to you for as long as you live. You can choose to secure an annuity which, on your death, pays a proportion of your annuity to your dependants. The level of protection is usually expressed as a percentage, i.e. 50%, 67% or 100%, of your income.

  • Pros: After your death, a dependant’s pension provides an income to your dependant for the rest of the dependant’s life.
  • Cons: Your initial income will be less than that of an annuity that is payable only to you and which ceases on your death.