Capital protected annuity

For a slightly higher cost than a certain annuity, a guaranteed annuity can be bought. This pays an annuity (to the estate) for a minimum period even if the annuitant dies during that period. If the annuitant lives longer the payments continue.

Thus an annuity guaranteed for ten years will be payable for life or ten years, whichever is the longer. If the annuitant dies during the guaranteed period, then the balance of the guaranteed instalments will be payable to his estate, though a continued cash sum may be payable instead.