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Immediate Life Annuity

An Immediate Life Annuity is a retirement income plan that can be bought with your own money from non-pension sources. It can be bought with savings, investments, inheritance or the tax free cash lump sum from a pension fund. This annuity can provide you with a tax efficient, additional income from the age of 55. It provides you with a guaranteed income for the rest of your life and can be seen as a low risk choice.

What are the benefits?

  • Guaranteed income. It promises to pay you a regular income for life, so it's a low risk option.
  • Income choice. You can receive your income monthly, quarterly, half-yearly or annually. Payments can be 'in advance' (from the start date), or 'in arrears' (at your chosen payment interval after the start date).
  • Tax Advantages. HM Revenue & Customs may agree that part of your payment is a return of capital and therefore not subject to tax. Any statements relating to tax are based on our understanding of current tax law, which may change in the future. Tax treatment will depend on your personal circumstances - a Financial Adviser will be able provide you with more information about your tax position.
  • No surprise charges. We take our charges into account when we work out the price of your initial annuity.

Things to think about

  • Depending on how long you live you may get back less than you bought your annuity for.
  • Our Immediate Life Annuity comes with a one year guarantee and value protection as standard. You can choose to extend your guarantee period along with other options.
  • No cash-in value. Once you've bought an annuity it cannot be cashed in at any time.
  • What happens to your annuity when you die?

    If you die within the first 90 days of the date your plan starts, and any dependant named on the policy dies before you, Value Protection will apply and a lump sum will be payable to your estate.

    If you die after 90 days but within your guarantee period, payments will continue until the end of the guarantee period. These will be paid to your estate or dependant on the policy.

    If you have chosen for an income to be paid to a dependant and they are still alive, agreed payments will be made to them.

    Please see your terms and conditions or contact your financial adviser for further information and exclusions which may apply to the above.

  • Changing your plan. The options you choose at the start of your plan can't be changed.

Your options

You can:

  • Buy an Immediate Life Annuity with a personal sum of at least £7,500 (after any adviser charge has been paid) from savings, investments, an inheritance or tax-free cash lump sum from a pension fund.
  • Buy an Immediate Life Annuity with a minimum sum of £100,000 (after any adviser charge has been paid) if it is purchased by the trustees of a will or settlement.
  • Choose whether you receive the same amount each year, or your payments increase by a fixed percentage between 0% and 5%.
  • Choose from a number of options which determine the level of regular income you will receive. Read more about the different options.

How to apply

You can only invest in an Immediate Life Annuity through a financial adviser. If you don't have an adviser you can find one in your local area by going to www.unbiased.co.uk.

Read the key features of an Immediate Life Annuity (PDF 91KB)

WC01035 08/2014

Contact us

For new policy enquiries or information on our products please call

0800 068 3038

Monday to Friday
9.00am - 6.00pm
Saturday
9.00am - 2.00pm
Sunday
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For our joint protection, telephone calls may be recorded and/or monitored.

Or, arrange for us to call you back at a convenient time.

Existing Customers

If you are an existing Annuities customer, please call

0800 068 6800

Monday to Friday
8.30am - 5.30pm
Saturday
8.30am - 2.00pm

For our joint protection, telephone calls may be recorded and/or monitored

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