Lifetime annuities provide an income for the life of the annuitant. An annuity income is comprised of two components as follows:
return on capital and
return of capital
The "yield" for an annuity income will always be a higher than that from fixed interest rates alone. This is because it includes interest plus a capital element spread over the annuitant's expected lifetime. However, an annuity ceases on death but also continues for as long as the life continues. Thus it provides longevity protection at a price.
We offer valuations of lifetime annuities with the option to order a signed actuarial valuation. Typically, these valuations are then provided to Government agencies - such as Centrelink and the ATO - or simply for those taking an interest in their own financial future. These can be either completed via the online form below.
Variations of single life annuities include: guarantee periods, deferred commencement, joint lives, reversions and last survivors. A specific example would be a tontine that has last survivor benefits payable across multiple lives. These types of annuities require specialist advice such as that offered by an actuary.