With a life annuity, most people hope to achieve several goals, some of which are in conflict.
For example you want to leave some money for your children, but if you take a longer guarantee period, you will receive less income than you need. And if you don’t take the annuity at all, you may outlive your capital!The main advantages of life annuities are:
a) Freedom from worry. No longer will you have to think about what happens if interest rate change or the stock market collapses.
b) Guaranteed income. You have a cheque deposited each month alongside your pension cheques; you know for certain, what money you will have each month.