The Lifetime Income Plan is an annuity contract purchased with a lump sum from the client's own funds (although the source of the lump sum cannot be a pension plan) where the client receives a series of regular payments for life, or for a specified period of 5 or 10 years.
Medical underwriting is available on our Lifetime Income Plan in the same way as our Pension Annuity and can often make a significant difference to the income your client will receive in the same way as our Pension Annuity, so it's well worth asking.
Key features of our Lifetime Income Plan:
- Part of the income from the plan will be paid tax free. This is called the capital content and is roughly equivalent to the premium spread over average life expectancy.
- The remaining part of the income, sometimes referred to as the interest element, is taxable as savings income and usually paid net of basic rate tax.
- When your client qualifies for an enhancement due to medical and / or lifestyle conditions, this will apply to the total income paid. The 'capital content' (tax free element) of the plan does not change following an enhancement.
- If an income for life is selected, the contract will cease either on death of the annuitant or, for joint life cases, the last surviving annuitant or the chosen annuitant selected at outset.
- If a temporary income is selected, the contract will cease at the end of the specified term or death of the annuitant(s), whichever occurs first.
- The capital protection option ensures that an amount at least equal to the value of the initial premium, or a certain part of it, is returned even if death occurs after a short period of time.
Useful LinksDownload Lifetime Income Plan Key Features Document
Lifetime Income Plan quotation form
For further information, or for quotations, please contact your usual account manager, call us on 0845 3022287 or email: ifasupport@justretirement.com