I understand that annuities provide a fixed income during the future lifetime of the annuitant. Effectively provides a loss of regular income from the individual not working. Removes the uncertainty of the speed at which the money is used up. In regards to the cost of annuity, I would imagine that the last survivor status annuity would be most expensive and the joint life the cheapest. How would the needs differ between annuity products written on single life, joint life, last survivor status? Many Thanks
Joint life second death is much cheaper as two lives have to die before the payout is made. Could be a vehicle for transferring wealth, and might be a way of avoiding / reducing inheritance tax. Joint life first death could be used for paying off a loan (mortgage) or to help provide benefits for a family in the event that breadearner / childcarer dies. Single life might be to cover loans on death / provide some inheritance.
Could the previous reply have misunderstood the question as being one on assurances? Just to set things right.
