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  Immediate Life Annuity

The Immediate Life Annuity we offer provides a regular income for life and is a way for your client to invest their personal savings or tax-free cash lump sum. Once purchased your clients cannot change or cash in their Immediate Life Annuity, even if their personal circumstances change.

Easy to buy


  • Your clients can buy this product with funds from savings, inheritance or tax-free cash that’s been taken from a maturing pension scheme.

Great choice


  • Clients choose to receive their income monthly, quarterly, half-yearly or annually.
  • A choice of income payments - the same amount each year or increasing each year by a fixed percentage.
  • And clients can choose an option to guarantee their estate will get back the value of the money put into the annuity, less any payments that have been made, on their death.

Good value


  • It may qualify as a purchased life annuity, with associated tax benefits.
  • Income can be guaranteed for a fixed period of time from the outset, even if your client dies within that time.
  • The option for paying income to a dependant when your client dies.

Age limits

If payment is to cover two people’s lives then both applicants need to be aged 55 or over but only one person needs to be below 95.

Term

Income is paid to your client for as long as they live and, if a dependant’s option is chosen, to that person as long as they live.

Payment limits

Minimum payment to start this plan is £7,500 after adviser charges, if the plan is being bought from own funds. That minimum figure rises to £100,000 after adviser charges if it’s being purchased by trustees of a will or settlement. If you have a client who would like to purchase a plan with a value of £2,000,000 or more after adviser charges, please contact us directly. 

Product charges

There are no extra product charges. All the charges for setting up and running this product are taken from the fund used to buy it and taken into account when setting the income level of the annuity. If we have to issue a re-quote, then we’ll levy a charge of £40 per re-quote. 

Adviser charges 

We’re happy to facilitate an adviser charge. This can be a fixed amount or a percentage of the amount used to buy the annuity, with the option of specifying a minimum and/or a maximum amount. 

Commission 

2% plus uplift. Rebating in 5% steps is allowed. Commission is only allowed on non-advised sales. 

Tax 

Our Immediate Life Annuity is taxed differently from pension annuities, HM Revenue and Customs may decide that part of your client’s payment is a return of capital and not subject to tax.

We're here to help or you can call us for a quote


For more information, call us on 0800 015 4909. Lines are open 8.30am to 5.30pm, Monday to Friday.

  Email us at retirementsupport@aviva.co.uk

Every financial product has its benefits and risks. Please consider them all carefully before recommending our Immediate Life Annuity product to your clients.

 It’s been designed for clients who:


  • Are typically aged between 55 and 95.
  • Want a regular income for life.
  • Are looking for a product that has no investment risk attached.
  • Have an amount to invest of £7,500 after adviser charges.

It’s unlikely to be suitable for clients who:


  • Would like flexibility over their future income.
  • Would like the opportunity to change the product in some way at a future date.

What do you need to think about:


  • Are there tax considerations you should discuss?
  • How old are your clients, what is their life expectancy?
  • Do your clients realise they can't cash this plan in at any time?

Possible alternatives:


  • Other forms of non-pension savings and investments.
  • Investment bonds.
  • ISAs.

Contact us

You can find contact details for each product area in the drop-down list:

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WA12004 05/2016