Fixed Term Income Plan

Also worth knowing

• What is the Fixed Term Income Plan?

  The Fixed Term Income Plan is a tax-efficient way to provide an income over a specific time period if you’re 55 or over. You can choose to receive a fixed or increasing level of income over a specified term, a guaranteed value at the end of the term, or a combination of both.

  Just so you’re aware, our Fixed Term Income Plan operates under the ‘Flexi-Access Drawdown’ rules. You won’t be able to change the income you want to receive throughout the term once your policy starts.

• What are the charges?

  We incorporate set up and administration costs when we calculate your client’s income. Your adviser fees can be paid from your client’s pension plan, but we must have their written instructions to do so.

• How do you calculate the benefits?

  We’ll show a breakdown of your benefits on the personal illustration. We’ll calculate them based on the following:

  • The amount invested
  • The term of the plan
  • Your client’s age
  • Your client’s postcode
  • What income they choose (if any) and the frequency of payment
  • The Guaranteed Maturity Value
  • Whether income is level or escalating
  • Investment market conditions at the point the plan starts

• Can my client (or a beneficiary) access the Fixed Term Income Plan before the end of the term?

  Only in certain circumstances, such as if:

  • Your client dies during the term
  • The policy becomes subject to a pension sharing order under a divorce settlement.

• What happens if my client dies before the maturity date?

  Your client’s beneficiaries will receive a guaranteed death benefit, which is the original purchase price – minus any income paid before tax – up to the date of death and after we’ve deducted adviser fees. The payment could be subject to tax if your client dies after their 75^th birthday.