What Is An Annuity’s ‘Guarantee Period’?

by Peter

When you take out an annuity, most annuities will include a minimum guarantee period.  This is the length of time that they will pay out for, regardless of whether you survive the guarantee period or not.

In most cases, this guarantee period is between five and ten years.

If you don’t survive the guarantee period, it means that your estate will receive this money anyway, so if you have dependents or survivors that you wish to ensure have some money if you unfortunately pass away within the five or ten years, it may be a factor you wish to take into account when shopping round for your annuity.

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