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

Protected Retirement Plan

Trustee 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. 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.

2. Plan Protection

  • The trustee can choose to protect some or all of the plan income and/or Guaranteed Maturity Value, by including plan protection when they set up their Protected Retirement Plan.
  • Plan protection means if the member dies during the plan term, the selected proportion of the income and Guaranteed maturity Value will continue to be paid for the rest of the plan term.
  • If the scheme trustees (for investment cases) or chosen beneficiary(s) do not want or are unable to continue with the plan, they can utilise the conversion option and end the plan immediately, thereby swapping the remaining income and/or GMV for a lump sum
    • 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 you transfer an existing pension into this plan and you know that you are in serious ill health when you do so, should you 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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LV=, County Gates, Bournemouth, BH1 2NF, UK