Jargon buster: financial phrases simplified for you

JUST SA’s weekly jargon buster aims to give simple, plain English explanations for typical words and phrases used in the financial industry, in particular, words relating to guaranteed life annuities and living annuities.

This week, we look at the letter M.

M: Minimum payment period

Also called a Guarantee Period. An annuity income is payable for as long as the annuitant (the person receiving the annuity) lives. You can choose a minimum payment period (up to 20 years), which means that if you die within that guarantee period, the annuity will continue to be paid for the remainder of that period to the named beneficiaries.

Source: Just Retirement SA, info@ justsa.co.za.

The jargon buster is intended for information purposes only. It should not be regarded as advice as defined in the Financial Advisory and Intermediary Services Act 37 of 2002 or any form of advice in respect of the policy, retirement, tax, legal or other professional service whatsoever.

You are encouraged to seek advice from an authorised financial adviser or to independently decide what financial product is appropriate for you based upon your own judgment and understanding of your financial needs.

Just Retirement Life (South Africa) Limited is a licensed life company, regulated by the Prudential Authority of the South African Reserve Bank and the Financial Sector Conduct Authority as an authorised financial services provider (FSP number 46423).