Claiming the state pension.

QUESTION:
What happens if I die just after buying my pension annuity?



ANSWER:
This has always been seen as the big drawback of the schemes. In the past the annuity tended to die with the holder – schemes were fantastic value for people who bought annuities at 60 and lived to be 100 but seemed to offer a raw deal for anyone who died much younger. Today it’s possible to protect your investment by requesting guaranteed payments for, say, five or ten years. You can also get annuities with small print that means your estate can claim back some of the difference between the amount you spent on it and the amount it paid out if you die before the break even point.