Let's Learn about a guaranteed Annuity today:
Guaranteed annuities can be purchased by both single life and joint life. The Annuity is usually purchased by depositing a lump sum amount of money eg. Pension amount with an insurance company and in return your are paid a monthly payment amount till death.

One can take up an annuity product for either single life or joint life with 5 options of guarantee periods of ; 0, 5, 10, 15 and 20 year guarantee periods. The annuity payments can be fixed amounts
or amounts increasing annually by 3% or 5%.
In joint life annuity, the policy holder can choose a spouse reversion on the annuity amount as either
50% of the annuity payment or 100% of the annuity payment

What is Guarantee period?
This is the period that the insurance company will continue to pay the periodic annuity to the beneficiary(s) listed when an annuitant passes on before the period chosen elapses.

Spouse reversion;
In a joint life annuity, this is the percentage of the periodic annuity that is payable to the spouse of
the policyholder in the unfortunate event of death of the policyholder and is payable till death of
the spouse.
The monthly payment from a joint and survivor annuity will be smaller than a payment from a single life annuity purchased with the same lump sum amount. The amount of survivor benefit will be defined as a percentage of the initial annuity amount. With a 50 percent joint and survivor annuity, the payment will reduce by half when the first person dies.

A 100 percent joint and survivor annuity pays the same monthly amount until the second person dies. The choices available for the joint and survivor option are set by the company providing the retirement annuity.

When does an annuity payment begin?
The annuity payment shall be made at the beginning of every month to the policy holder after purchase of an annuity plan.

When does an annuity payment stop?
The annuity payments will stop in the event of: unfortunate death of a policy holder (single life),
unfortunate death of both policyholder and spouse (joint life).

Entry Age;
The minimum age of entry is 50 years (inclusive)

Cooling off period;
There is a 14 day cooling off period for the annuity cover. In this case, the Assurance company shall return all the funds to the annuitant or original pension provider, whereas the client must also return their
tax-free cash, if they have received it

Can one opt out of the annuity plan?
After the cooling off period has elapsed one cannot opt out of the annuity plan.
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