Should you consider buying a flexible annuity instead of a conventional annuity? A flexible annuity combines the advantages of a regular income for life with the advantages of a certain degree of flexibility and control over your income payments, your investment options and your death benefits. A flexible annuity will therefore give you greater control over your annuity. When a traditional (non-profit style) annuity is set up, the options selected at the outset cannot be changed a later date even if your particular circumstances change.
For instance, if it is a joint life annuity you purchase and your partner dies first, the annuity cannot be re-priced to reflect the higher annuity rates for a single life annuity. Or if your circumstances change in time, you cannot alter your income. But a flexible annuity provides you with income flexibility, investment control and some choice of death benefits. There are now some new income drawdown (unsecured pension) products, for instance, the income plans available from Living Time which although not annuities as such have many of the features and advantages of a flexible annuity contract. There are only a few flexible annuities available on the market and if you would like more information you should contact a specialist annuity adviser.
