12:44 25 February 2013
Joint life annuities can give you the regular benefits of an annuity, with a couple of extra considerations thrown in for you as well. For example, in your retirement planning, if you discover that your spouse or partner qualifies for an enhanced or impaired annuity, you may still be able to get a joint annuity even if your own health is fantastic.
The main benefit of a joint life annuity is that the benefits continue to be paid out to your spouse, partner, or even to a dependent upon your death. If the benefit is being paid out to a minor dependent, the payments may cease after a certain age. If it is for a spouse or partner your annuity payments will continue for the remainder of their lives.
Here are a couple things to consider if you choose a joint life annuity:
1.You will need to choose the level of payments your beneficiary is to receive when you set up the annuity. This cannot be changed at a later time, so make sure you take time to consider everything first.
2.If you choose for your beneficiaries to receive a 100per cent payout, it is possible that your own payout while you are living will be less.
3.You have the right to choose your annuity provider so be sure to compare rates.
If you are just starting your retirement planning and you have quite a few years to go before you actually retire, considering finding an Independent Financial Advisor (IFA) who can decode the jargon to give you the highlights about what options are available to you.
Shopping around and comparing quotes can mean a significant difference in your retirement income.
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