Purchased Life Annuity

Also worth knowing

• What you’ll get

  As an example, if you pay a lump sum of £10,000 or more in to our Purchased Life Annuity, you’ll get:

  • A guaranteed income for the whole of your life or for a fixed time period eg. 15 years
  • The option of continuing the income for a set period of time after you die
  • A range of options to suit your circumstances

• Optional features – income

  When you set up your Purchased Life Annuity, you can choose to increase your income by a fixed percentage (up to a maximum of 10%) each year.

  You can also choose to receive your income on a monthly, quarterly, half-yearly or yearly basis.

• Benefits on your death

  You can choose from a number of death benefit options to avoid losing some of your investment if you die soon after you start taking income. If you don’t choose a death benefit option, your policy will end when you die.

  Please speak to your adviser for details of how these work.

• Tax

  In most cases, HMRC allows us to treat part of each income payment you receive as a return of the original lump sum you paid. They class this as the capital element, which means you won’t be taxed on your original payment. However, the difference between the gross income payment and the capital element is taxable as savings income.

• Do I need advice?

  We don’t give personal recommendations on the products we offer. To help you decide if the Purchased Life Annuity is right for you, you should speak to an adviser. If you don’t have an adviser, please visit Unbiased.