Immediate Annuity contracts offer a number of different options:

Choosing an annuity that pays for your lifetime only (Single/Straight Life Annuity)

If you choose this option the annuity income is paid throughout your life only. When you die, the income will cease. The income you will receive each year from a single life annuity will be greater than a joint life annuity. However, please bear in mind that the income will cease on your death.

Choosing an annuity that continues to your spouse or partner (Joint Life Annuity)

You can arrange for an annuity income to be paid to your husband, wife and/or dependant after you have died. This means that after your death, your spouse or partner will receive an income for the rest of their life. A spouse's or partner's income may be less important to you if your spouse or partner has adequate retirement income of their own.

You can choose what percentage of your retirement income will continue to be paid to your spouse or partner on your death. For instance, you could opt for the annuity to continue in its entirety to your spouse,. Alternatively, you could choose the annuity to reduce by half. The greater the spouse's annuity, the lower the initial income will be.

All annuities will pay out for at least the whole of your life. However, you can also choose for your income to be guaranteed for a minimum period of time, referred to as the "certain period," and usually 5, 10 or even 20 years even if you were to die before then. This means even if you die before the end of the guarantee, the remaining payments left under the guarantee will be paid to your estate. If you have opted for a joint life annuity, a guarantee period may be less important to you.