We know it's a tough topic, but we'll make it a little easier
when the plan ends
Worried about passing away before the end of the plan?
You can choose different combinations of the three options to best suit your needs. If you're unsure which benefits would be best for you, please speak to an adviser.
Beneficiary's income
You can choose to provide your spouse, civil partner or chosen beneficiary with an income.
- Your 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 your beneficiary survives until the end of the term, we'll pay out the chosen percentage of the maturity value.
Guarantee Period
You can protect your income for a set period of time
If you pass away during this time, the remaining income will be paid as a lump sum.
- If your plan also includes a beneficiary’s income benefit and, if your beneficiary is still alive when you pass away, your income will continue to be paid at the full amount until the end of the guaranteed period. If your beneficiary is still alive at the end of the guaranteed period, the beneficiary’s income will continue to be paid.
- If your beneficiary passes away within the guaranteed period, the remaining income will be paid as a lump sum.
- This option isn't available if you've chosen Value Protection as you cannot include both.
Value protection
You can protect up to 100% of your original investment if you pass away within the plan term.
- The lump sum payable will be the initial amount used to purchase the Protected Retirement Plan (or you can choose to protect a proportion of this amount), less the total amount of income paid.
- This option isn't available if you've already chosen a guarantee period. You can't choose to include both a Guarantee Period and Value Protection.
Plan protection
Plan protection allows the trustee to protect some or all of the plan income and/or guaranteed maturity value.
This option only applies to the trustee version.
Taxation information
If you die before age 75, any lump sum will be paid tax free
If you die at age 75 or older, the beneficiary will pay income tax at their personal rate.
- If we pay a beneficiary's pension to a named beneficiary who isn't a spouse or civil partner, they may be subject to inheritance tax liability.
- Tax treatment depends on your personal circumstances. Any references to taxation are based on our understanding of current legislation and HM Revenue & Customs practice, which can change.
Financial advice
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