Joint life 50%, 3% escalation, no guarantee - meaning please

Notebook

Hi
Can someone explain the following
Joint life 50%, 3% escalation, no guarantee
Single life, 3% escalation, 5 year guarantee
Single life, level, no guarantee

Thinking single - until I die
Joint - transfers to partner
escalation - grows during my life by 3%
guarantee ??

Any help appreciated

rjmachin

I believe the below is correct.  If not, someone will be along to correct me:

Joint life 50% = If you die, your partner will get 50% of your monthly annuity/pension
Single Life = If you die, your annuity/pension will stop (after the guarantee period if one is applicable)
3% escalation = Your annuity/pension will increase by 3% each year
5 year guarantee = If you die, the annuity/pension will continue to be paid until the guarantee is up

dunstonh

Joint life 50%, 3% escalation, no guarantee

It means the annuity drops to 50% on the named beneficiary (could be any spouse depending on options or provider selected - it is not consistent).   3% annual indexation on the payments and no guarantee period (i.e. if you die after 1 month, then the annuity will drop by 50%.  If the beneficiary dies in month 2, the annuity stops altogether)

Single life, 3% escalation, 5 year guarantee

Indexation same as above.  Single life means on your life only.   5 year guarantee means a minimum of 5 years income will be paid.  i.e. if you die in month 3, a further 57 income payments will be made.

Single life, level, no guarantee

level means no indexation.   no guarantee means it ends when you die.


I take it you haven't got onto other annuity options yet like value protect, with or without proportion or with or without overlap?