Life annuity buyers have various concerns about buying a life annuity, all of which centre around getting the best possible income.
But, in my long experience with these buyers, one thing stands out from the pack and that is interest rates. However interest rates are only one and not necessarily the most important of the 4 factors you need to consider. I’ll touch on them briefly here but if you want a more detailed explanation, just let me know.The 4 main concerns should be:
1. Age and health of the life annuitant
2. Interest rates
3. Length of guarantee period if any
4. What type of life annuity? a joint life annuity for one portion and a single life annuity for the balance? Or a term certain single life annuity?
5. Life expectancy is increasing
6. Company to be chosen? Funds to be supplied?