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Provides a secure income over a set term, with a guaranteed value at maturity

Protected Retirement Plan

Customer death benefits

Is your client worried about passing away before the end of their plan? They can choose to buy one or more of our optional death benefits at the start of the plan. There are three of these options outlined below:

1. Beneficiary's income

We can pay your client's annuity income:

  • They can choose to provide their spouse, civil partner or chosen beneficiary with an income.
  • Their surviving beneficiary will receive an income equal to the chosen percentage of your income until either the end of the plan or until they pass away.
  • If their beneficiary survives until the end of the term, we'll pay out the chosen percentage of the maturity value.

2. Guaranteed period

  • They can protect their income for a set period of time and if they pass away during this time, the remaining income will be paid as a lump sum.
  • If their plan includes a beneficiary’s income benefit and, if their beneficiary is still alive when they pass away, their income will continue to be paid at the full amount until the end of the guaranteed period. If their beneficiary is still alive at the end of the guaranteed period, the beneficiary’s income will be paid.
  • If their beneficiary passes away within the guaranteed period, the remaining income will be paid as a lump sum.
  • This option isn't available if they've chosen Value Protection as they cannot include both.

3. Value protection

  1. Your client can protect up to 100% of their original investment if they pass away within the plan term.
  2. The lump sum payable will be the initial amount used to purchase the Protected Retirement Plan (or they can choose to protect a proportion of this amount), less the total amount of income paid.
  3. This option isn't available if they've already chosen a guarantee period. They can't choose to include both a Guarantee Period and Value Protection.

    Taxation

  • If your client dies before age 75, any Beneficiary’s income/Guaranteed period income will be paid tax free. If they die at age 75 or older, the beneficiary will pay income tax at their personal rate.
  • If your client dies before age 75, any Guaranteed period/ Value Protection lump sum will be paid tax free. If they die at age 75 or older, the lump sum will be paid to the beneficiary after deducting income tax at their personal rate. However, any tax paid to a trust (other than a Bare Trust) will be subject to 45% tax. If paid to a Bare Trust, the lump sum will be paid after deducting income tax at the personal rate of the trust’s beneficiary.
  • If your client transfers an existing pension into this plan and they know that they're in serious ill health when they do so, should they die within two years of the transfer this amount could become liable to inheritance tax.
  • Tax treatment depends on your client's personal circumstances. Any references to taxation are based on our understanding of current legislation and HM Revenue & Customs practice, which can change.

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FOR UK FINANCIAL ADVISERS ONLY
LV=, County Gates, Bournemouth, BH1 2NF, UK