Understanding Joint Life Annuity

Life is uncertain and accidents happen anytime when you least expect them. In this case, there are several ways in order to insure that your children and spouse have a good life ahead if ever you need to leave this world in no time. You might already have your home, your car and your business to hand down to your loved ones but this might not be enough as annuities act as means in providing that income which is safe and yielding depending on the type of annuity which you want to opt for. Joint life annuity is an insurance policy sold to married couples. This essentially pays some kind of periodic benefit through out the lifetime of two married individuals.

Moreover, many couples choose this kind of policy after retirement to help them out manage their hard earned money and savings. The payment usually is terminated after the first death. There are also instances when this kind of annuity is availed of even before retirement or even during the time when the couple is still employed. This way, they are able to manage their earnings early on. There are a lot of reasons why people choose to invest in joint life annuity. This kind of investment and insurance contract is much-availed of because of its high tax benefits. This is the reason why many rich and filthy individuals and partners seek for this annuity because they are able to transfer huge sum of money in order to mitigate taxation on their earnings.

There is no doubt annuities are a real big help when it comes to handling money and ensuring your family’s future. Joint life annuity is where you can definitely mold your family’s future in shared responsibility with your spouse. Because products under this kind of policy are quite complex, there is a need for couples to seek for advise from a legal professional before investing on them.

Making your retirement choices

As you approach retirement you need to start to think about the choices you need to make when taking your pension.

The first thing to remember is you do not have to take the pension offered by your current pension provider. You have the right to take your retirement fund to a different provider, this is called the open market option.

Choosing the right provider can be very difficult and time consuming, that’s why you should seek advice from an independent financial adviser (IFA) that understands annuities. If you do not already have your own financial adviser then you can use the services of Retirement Solutions limited a specialist annuity IFA.

What is an annuity?

Your pension pot that you have saved is converted to an annuity, which is a series of regular payments of income paid for the rest of your life.

What affects the cost of an annuity?

Your age, your gender and your health and lifestyle can all affect the income you receive from your pension pot.

Who can buy an annuity?

You can buy an annuity if you have one of the following types of pension:

Personal pension
Stakeholder pension
Most Additional Voluntary Contribution (AVC) schemes
Free-Standing Additional Voluntary Contribution (FSAVC) scheme
Retirement Annuity Contract (RAC)
Section 32 policy (buy-out bond)
Occupational money purchase scheme

If you have contracted out of the additional state pension, you must use that part of your pension fund to buy a protected rights annuity. You have the same options as with your other pension funds except that you must buy a joint-life annuity paying a 50% spouse’s pension if you are married or have a civil partner.