What happens if I die after buying an annuity?

If you die after taking an annuity then typically there will be no further payments or lump sum paid to a beneficiary. However, when purchasing an annuity you can select certain guarantees to ensure certain money is paid.

• Guarantee period - You can select a guarantee period of up to 10 years (5 for protected rights). This will mean that should you die within the selected period the income will continue to be paid until that time expires.
• Joint life option - You can select a certain proportion to continue to be paid to your spouse or other dependant upon your death.
• Value protection - If you die before a pre-set age (which used to be 75) and the total gross income paid out is less than the amount of the fund used to purchase the annuity, the balance will be paid less a 55% tax charge.

Selecting the options above will affect the income you receive from your annuity. The degree to which it is affected will depend on your circumstances. To view a comparison of the different options, please use our online annuity calculator.

Please note tax rules can change and their value will depend on the circumstances of the investor.