A life annuity provides annuity payments as long as the annuitant (or annuitants) are alive. Choosing a guaranteed period for a life annuity or joint life annuity ensures we'll pay a death benefit if income has started and the annuitant or both annuitants die during the period selected. The Client chooses the length of the guaranteed period at purchase and can't change this once we've issued the policy. The longer the guaranteed period selected, the lower the income payments.
If income has started and:
- The annuitant - or in the case of a joint life annuity, the last surviving annuitant - dies during the guaranteed period, we'll pay a death benefit. See “Death benefits” section for details.
- The annuitant - or in the case of a joint life annuity, the last surviving annuitant - dies after the end of the guaranteed period, income payments stop and we don't pay a death benefit.
The source of premium may also restrict the minimum and maximum guaranteed periods available.
