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 benefits continue.
Guarantee period - You can select a guarantee period when you set up an annuity (for example for 5, 10 or even 30 years). 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 of your annuity income to continue to be paid to your spouse or other dependant upon your death.
Value protection - If you die before a pre-set age 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 any tax (if applicable).
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 the value of any benefits will depend on the circumstances of the investor. Find out more about the tax rules that apply to payments from an annuity after death by reading our free factsheet.