I have heard premiums can be quite expensive. What happens if annuity provider goes bust, would I lose everything?
All of the Immediate Needs Annuity providers we deal with; Aviva, Legal & General and Just, are well established providers of such annuities. However, for your added peace of mind they are all covered by the Financial Services Compensation Scheme.
In the unlikely event of either of these companies no longer being able to meet their liability to you , the FSCS will either arrange for another provider to continue paying the benefits, or if this is impossible, would currently provide compensation of 100% of your plan benefits, so you don’t need to worry.