There are various annuity options to protect your dependants and yourself. You can tailor your annuity to specifically match your requirements, as there are a range of options available. It is important that you consider adding these options, especially if you have any dependants. Whilst these options are important, there is a downside. There is a cost relating to each option you select which will directly effect your starting level of income. The more options you select for your annuity, the greater the effect on your income.
For example, selecting a joint life annuity in addition to a 3% escalating income will have a greater effect on your stsrting income than just selecting one option, albeit both are useful in their own way. You could select a guarantee period for your annuity income. Including a guarantee period means that your annuity payments will continue for the guarantee period, usually 5 or 10 years, even if you die within that time period. Remember, regardless of whether you include a guarantee period in your annuity or not, you will always receive your annuity income for the remainder of your life. So, if you’ve dependents to consider, whether a spouse or partner, you should consider a joint life annuity, or, perhaps, a guarantee period.