How does annuity value protection work?
Annuity value protection allows you to protect up to 100% of the price you paid for your annuity.
Key points:
- Standard value-protection for 90 days from the plan start date.
- You can extend the value protection for the rest of your life or for a specified term, beginning at the plan start date.
- It protects up to 100% of the price paid for the annuity, less any payments already made.
- It is paid as a lump sum to your beneficiaries.
Why some people choose value protection
Annuity value protection is an additional death benefit you can purchase with your annuity. If you die in the early years of your plan, the total amount of income you’ve received might be less than your pension pot that you used to buy the annuity. Value protection lets you protect your hard-earned cash by paying a lump sum balance to a beneficiary or dependent upon death.
Protects the pension investment. If you die early, we will calculate how much income you have received so far. If it's less than the amount used to buy your annuity, the difference will be paid to your beneficiaries.
Provides financial security for loved ones. Value protection ensures your spouse, children, or other nominated beneficiaries receive a lump sum, helping to support them financially after death.
Combines with other death benefits. Value protection can be selected when there is a spouse or dependent pension, providing additional protection upon the death of the last surviving life. If the 90-day value protection is extended, it effectively replaces the guaranteed period, so these two options cannot be combined.
If you do not select any additional benefits, you will receive the standard 90-day value protection and a 1-year guarantee period.
How much does it cost to protect the value of your annuity?
This varies and depends on your personal circumstances. As standard, we offer value protection for 90 days from your plan start date. The cost is incorporated into your quote and reduces your income.
| Annuity features / Annual income | Age 55 | Age 65 | Age 75 |
|---|---|---|---|
| Single life - no value protection | £3,223 | £3,543 | £4,403 |
| Single life - 100% value protection | £3,160 | £3,397 | £3,975 |
| Annual difference | -£63 | -£146 | -£428 |
Aviva annuity rates as at 18th June 2026.
When you take out an annuity directly with us you can get 100% value protection for the whole of your life. However, if you take your annuity out through a financial adviser you may be able to get more flexibility, letting you alter the period of time covered and the percentage that can be paid out.
If you’re at all unsure of what will be best for you, we strongly recommend you speak to a financial adviser. They will charge for their advice, but you'll receive a recommendation based on your personal circumstances. If you don't have a financial adviser, you can find one in your area using Unbiased.
A retirement income you can count on
Buying an Aviva annuity means guaranteed pension payments for the rest of your life.
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