What happens to my annuity payments if I die?

If you die, normally your annuity payments will stop and the pension fund used to buy your annuity will be lost.

However there are a number of options you can take to ensure a beneficiary can still benefit from your pension savings or annuity income.

Value protection

Value protection allows you to protect all or part of the fund used to buy your annuity, paying a lump sum outside of your estate. Selecting value protection will provide a lower level of income for you in your lifetime. 

Guarantee periods

Taking the option of a guaranteed period means you can protect your annuity for a specific number of years and your income will still be paid even if you die before the specified period is up. Selecting a guarantee period will provide a generally lower level of income, but it guarantees that your estate continues to receive the income.

Joint life annuities

A joint life annuity will pay you an income for the rest of your life. It will then go on to pay an income to your spouse, civil partner, or chosen beneficiary for the rest of their life after you die. A beneficiary is someone who is either married to you (including civil partners), your chosen beneficiary or someone who is financially dependent, or dependent due to disability, on you at the date of your death. Selecting a joint life annuity will generally provide a lower level of income for you in your lifetime.