If I take out an immediate needs annuity for my father, will the income provided remain the same for the rest his life?
This is purely down to you.
You can either set up a level annuity, which is cheaper but the income or benefit it provides will never increase, or you can buy an escalating annuity.
With an escalating annuity the benefits your father receives will increase each year by either a fixed rate per annum 0-10% p.a or by RPI, depending on what you have requested. Obviously the cost of an annuity which escalates will be more expensive but normally not too much more.
We will always obtain quotes on both a level annuity and escalating ones so you can see for yourself.
To find out how much more expensive , complete our online quote request form and we request quotes from all annuity providers FREE OF CHARGE and without obligation.