LV= uses cookies to give you the best experience online and to provide anonymised, aggregated site usage data. You can find out what cookies we use and how you can disable them in our Cookie Policy. By continuing to use our website, you agree to our use of cookies in accordance with our cookie policy unless you have disabled them.

skip to main content

Catch up with the latest press releases from LV=

Large green heart

LV= adds break clause to fixed term annuity

Press release: 15/05/2012

Retirement specialist LV= has added a break clause to its fixed term annuity, the Protected Retirement Plan (PRP).

The break clause allows clients to transfer to another pension or annuity product with LV= or another registered pension scheme in the event of a qualifying change in circumstances [1]. The changes in circumstances covered under the break clause include a client becoming eligible for flexible drawdown, the diagnosis of a medical condition which would mean a client qualifies for an enhanced annuity, marriage, divorce or the death of a spouse or civil partner. The break clause can be used within 12 months of a change in circumstances and is available for new and existing clients with an LV= PRP.

LV='s Protected Retirement Plan (PRP) allows clients to choose an annuity term between three and 25 years. The plan is most suitable for clients who do not yet wish to purchase a lifetime annuity. Clients can choose their income level, including drawing no income at all, and will receive the agreed income for the set term.

At maturity, clients have the flexibility to buy a lifetime annuity, transfer to an unsecured pension, or invest in another PRP.

John Perks, LV= Managing Director of Retirement Solutions said: "The inclusion of a break clause on our protected retirement plan means that a client is able to switch to a more appropriate retirement solution if their situation changes. We know things happen in life that can't be planned for and the increased flexibility offered by our PRP, for new and existing clients, makes it a very strong proposition."

Further details on the LV= range of flexible protection, retirement solutions and investment products is available at

Note to editors

[1] On receipt of proof of a client’s change in circumstances, LV= will calculate a client’s transfer value based on the Guaranteed Maturity Value and remaining income payments to the end of the term less the costs of disinvesting the plan. LV= will also take into account current investment conditions and the remaining term of the plan. The transfer value may be less than the Guaranteed Maturity Value.
If a client qualifies for a flexible drawdown they will be able to take the transfer value as a taxable lump sum payment.

About LV=

LV= employs 5000 people and serves around five million customers with a range of financial products. We are the UK's largest friendly society and a leading financial mutual.

When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products.

We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations such as ASDA, Nationwide Building Society and a range of trades unions.

LVFS is authorised and regulated by the Financial Services Authority, register number 110035. LVFS is a member of the ABI, the AFM and ILAG.

Registered address: County Gates, Bournemouth BH1 2NF.