annuity

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61plus
61plus Posts: 7 Forumite
in Pensions, annuities & retirement planning
My guarantee period for my annuity has expired.
The wording on my policy letter says
"your guarantee period has expired this means your annuity is payable to you for your lifetime "
What exactly does that mean ?

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  • dunstonh
    dunstonh Posts: 116,370 Forumite
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    It means that the death benefit is now over and the annuity will die with you (unless you bought a joint life annuity). i.e. if you bought 5, 10, 20 or 30 year guarantee, it will pay our for life or the guarantee period, whichever is longer.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    dunstonh wrote: »
    if you bought 5, 10, 20 or 30 year guarantee, it will pay our for life or the guarantee period, whichever is longer.

    "Guarantee period" was a daft form of words for the insurance/annuity companies to have adopted. All sorts of people who know nothing about it are bound to worry that the lifetime payment to them of their annuities is not "guaranteed".
    Free the dunston one next time too.
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