C
claire3000006
Member
When a company offers a guaranteed annuity option does it have to provide the annuity (if the option is in the money and exercised) or can it just fund the shortfall by adding to the maturity payout and the policyholder can then buy an annuity from another provider and be in the same position?
For example, if the maturity amount is £1000 and on the open market the policyholder can get an annuity of £50, but the GAO would give an annuity of £60, can the insurer just pay out £1000+£200 so that the policyholder can get £60 on the open market?
For example, if the maturity amount is £1000 and on the open market the policyholder can get an annuity of £50, but the GAO would give an annuity of £60, can the insurer just pay out £1000+£200 so that the policyholder can get £60 on the open market?