This policy provides a guaranteed lifetime income. A lump sum amount or part of your pension benefits can be used to purchase an annuity after retirement in exchange for regular lifetime payments. Features: Guarantee Period – Number of years an annuity payment is guaranteed to the beneficiaries of the annuitant in the event of the annuitant’s death. This prevents loss of income in the event an annuitant dies prematurely. Single or Joint Life – An annuitant may either take up an annuity alone or jointly with a spouse. In the event of death under joint life, payment will revert to the surviving spouse. Escalation – An annuity may either be escalating or non-escalating. Escalating policies will increase by either 3% or 5% annually on the policy anniversary date. This is usually to smooth out the effects of inflation. Taxation – Annuitants enjoy a tax relief of Kshs. 25,000 monthly. Annuitants above the age of 65 enjoy tax free payments.