If the rate increases, the new higher rate will automatically apply but it it decreases the original rate will remain guaranteed for a further period of 21 days from the date of the reduction.
Previously Aegon’s minimum guarantee was 14 days.
Head of annuity sales Mark Cardy says: “Our distributors have told us that one of their biggest frustrations in dealing with a client’s annuity is the time and effort it takes to re-quote to keep the rate current whilst waiting for the case to complete.
“We believe a longer rate guarantee period reduces the requirement for numerous re-quotes, saving advisers and clients valuable time and money. Working with our distributors and improving our annuity proposition will enable us to maintain our market leading position.”