What is a Partner’s Annuity?
When it comes to retirement time you may not be the only person that will be affected by your annuity income. Thinking about an income for the rest of your life is usually a decision that you will make in consultation with other family members, especially if they are dependent on you for a source of income and this is something that you will need to take into consideration, especially when you are making a decision as crucial as an annuity.
What Annuity options do I have available?
If you are considering taking out an annuity with your partner then there are several options available to you:
- Joint life annuity – this is one of the most common options for partners and it ensures that your annuity provides an income right up until the death of the second partner. This can be a great way to ensure that both partners are protected under an annuity scheme and your income will be based on the lifestyle and health of both partners
- A guarantee period – this is an additional option that you can purchase with your annuity and this ensures that your annuity income is paid for a minimum amount of time from the start date of the annuity, usually 10 years, so that if you were to unexpectedly die in this time the income would continue to a beneficiary
- Value Protection – this ensures that
What is the benefit of a Partner’s Annuity?
If you are looking for peace of mind and to ensure that your partner will be cared for if you were to unexpectedly die then this type of annuity can be a great idea. It can also help to ensure that your partner and your family are financially stable and cared for in the event of an unexpected death.
What are some disadvantages of a Partner’s Annuity?
If one partner is of particularly bad health or maybe leads an unhealthy lifestyle then in many situations they may be eligible for a higher annuity income. Unfortunately when it comes to a partner’s annuity the situation of both partners is taken into consideration, so this means that if one partner is significantly younger, or healthier than the other it will bring the overall annuity income down quite substantially. In this situation a single life annuity could prove more lucrative for the individual.