When it comes to making important decisions in your life, there is normally more than one person that you need to take into consideration and this is especially true when it comes to deciding what type of annuity you would like. You may be relied upon by various other family members to provide for them and as a result you could need to take into consideration partners, children, dependents and other family members who could be left out in the cold if you were to die unexpectedly.
If you want to encompass the needs of your dependants then there are many options available to you when it comes to annuities and if you want one that is specifically targeted at a partner then you may take into consideration a joint life annuity.
A joint life annuity is one option which you may consider if you are looking to take out a plan which helps to cover your partner and this can help ensure that you receive an annuity income over an extended period of time, right through until both partners die. This can leave you with peace of mind that your partner will be looked after in the case of an unexpected death.
One consideration that you may need to make is the income difference between a single and a joint life annuity, if your partner is of relatively good health or significantly younger than you then you could find that your annuity is greatly decreased and that you may be better off financially to take out a single life annuity. If you want to do this then an annuity guarantee period could be a better option as it guarantees your annuity income over a given period, this is usually 5 - 10 years depending on how long you select.
The last option which you may consider is value protection and this type of concept comes into play if the annuitant were to die before the age of 75. Upon death the beneficiaries can be awarded the remaining annuity income which has been unpaid, but this can be subjected to a rather harsh tax rate of up to 55%.
If you want to encompass the needs of your dependants then there are many options available to you when it comes to annuities and if you want one that is specifically targeted at a partner then you may take into consideration a joint life annuity.
A joint life annuity is one option which you may consider if you are looking to take out a plan which helps to cover your partner and this can help ensure that you receive an annuity income over an extended period of time, right through until both partners die. This can leave you with peace of mind that your partner will be looked after in the case of an unexpected death.
One consideration that you may need to make is the income difference between a single and a joint life annuity, if your partner is of relatively good health or significantly younger than you then you could find that your annuity is greatly decreased and that you may be better off financially to take out a single life annuity. If you want to do this then an annuity guarantee period could be a better option as it guarantees your annuity income over a given period, this is usually 5 - 10 years depending on how long you select.
The last option which you may consider is value protection and this type of concept comes into play if the annuitant were to die before the age of 75. Upon death the beneficiaries can be awarded the remaining annuity income which has been unpaid, but this can be subjected to a rather harsh tax rate of up to 55%.
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