Comparing Fixed Term Annuities

hildasmuriel

I have been using Money Helper to compare fixed term guaranteed income products.

The 3 quotes were from:

Canada Life - Fixed Term Income Plan details

LV - protected retirement plan details

Legal and General - Cash Out Retirement Plan key features

The amounts are fairly similar. I am now looking at what happens if the retiree dies during the fixed period. I read them as:

Canada Life - a lump sum is paid of (the original purchase price less what has been paid)
LV - nothing more is paid unless you have chosen to buy death benefits
Legal and General - the plan continues to pay out to your nominee


Anyone got time to check the links above to see if I'm right, please and thank you?

Marcon

hildasmuriel said:

I have been using Money Helper to compare fixed term guaranteed income products.

The 3 quotes were from:

Canada Life - Fixed Term Income Plan details

LV - protected retirement plan details

Legal and General - Cash Out Retirement Plan key features

The amounts are fairly similar. I am now looking at what happens if the retiree dies during the fixed period. I read them as:

Canada Life - a lump sum is paid of (the original purchase price less what has been paid)
LV - nothing more is paid unless you have chosen to buy death benefits
Legal and General - the plan continues to pay out to your nominee


Anyone got time to check the links above to see if I'm right, please and thank you?

Yes, but that's not quite the end of the story.

You say the amounts are fairly similar, but are you certain you are comparing like for like eg L&G only offers fixed income without index linking or other inflation proofing - have the other quotes been on that basis? Does your LV quote include death benefits similar to those offered by CL and L&G, given that you have to make choices if you wish to have death benefits with the LV plan?

Not sure from your post if you've already done so, but if not, an appointment with PensionWise (free) to talk through the options could help clarify your thinking: https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise?source=pw

hildasmuriel

Thanks.

Yes all the amounts quoted were on like-for-like basis. None of them were index linked. The LV did not have any death benefit included.

I know that having a flat rate means that inflation will bite and reduce the spending power of the yearly amount. (I know I haven't been asked this yet, but it's a fair question!)

westv

Money Helper doesn't offer the option of index linked in it's fixed term annuity calculator.