Key Features of the
Purchased Life Annuity
The Financial Services Authority is the independent financial services regulator. It requires us, Hodge Lifetime, to give your client this important information to help them decide if this purchased life annuity is right for them. Your client should read this carefully so they understand what they are buying; and keep it safe for future reference.
Its aims
- To provide a fixed, guaranteed annuity income in return for a cash sum payment (the purchase price)
- To provide the income at agreed intervals, either monthly or annually in arrears
- To allow your client to choose, subject to plan features, an element of either Capital or Income Protection
- To allow your client to choose to have the income based on the lifetime of the annuitant (or survivor of joint annuitants), or for a specified term of between five and ten years
Your client’s commitment
- The income will be purchased from their own funds
- Once purchased, your client cannot alter the annuity arrangement or cash it in
Risk factors
- The income will cease on the death of the annuitant (or survivor of joint annuitants) even if this occurs in the early years of the plan.
- If the plan does not include either Capital or Income Protection, no further payment will be made
- Do not forget that inflation would reduce what could be bought in the future with the income shown in the personal illustration and policy document
WARNING – this contract has no cash-in value at any time.
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Hodge Lifetime by calling our
Broker Support Unit on:
0800 731 4076