Our Flexible Life Annuity (‘FLA’) is a flexible unit-linked purchased life annuity, written on a single life basis. It is designed to allow your clients the freedom to choose the level of income they need at outset, then adjust the level and frequency of payments whenever they wish.
Eligibility
UK tax resident aged 18 and over. No maximum age. Single life basis only.
Premium
Initial minimum premium of £100,000, with no maximum. Additional investment ‘top-up’ amounts are allowed, with a minimum amount of £50,000.
Income
The level and frequency of the income payments can be controlled to support your client’s current and future needs and objectives. The income payments can be increased or decreased, the frequency can be changed and the income payments may be paused and restarted at any time. We provide a Tax-Exempt Sum (‘TES’) each year in line with current legislation which can be carried forward to future years if not taken.
Being unit-linked, your client’s investment can remain invested within the market. There is a wide range of permitted investments which allows you to select an appropriate portfolio to maintain a steady income, based on your client’s attitude to risk.
The FLA can be used as an estate planning solution, if purchased in conjunction with a London & Colonial Assurance (‘LCA’) preference share. Find out more about the LCA preference share here.
1) are aged 18 and over, and live in the UK
2) have at least £100,000 to invest
3) need tax-efficient income that they can adjust
4) want their money to remain invested to benefit from potential growth from their investments
5) have used their ISA or pension allowance and could benefit from other ways to invest tax-efficiently
6) want the ability to top-up their annuity.
1) are non-UK tax resident
2) are aged 17 and under
3) don’t have £100,000 to invest
4) don’t want to remain in the investment market or aren’t prepared to accept investment risk
5) need guaranteed annuity payments.
You can read our Fair Value Assessment here to find more out about product suitability.
If you are already registered with us then you can complete a Flexible Annuities Illustration Request form which you can find here.
If you aren’t already registered to work with us there are some steps you’ll need to go through. Find out more here.
Need help with an existing client’s policy?
We have a range of important documents to provide you with more information about the FLA.
Case studies can also bring to life how the Flexible Life Annuity can help in your client’s portfolio. Read our case studies here.
When a client buys one of LCA’s products the assets and funds they invest in are placed into a ‘Cell’. As a separate cash transaction the client can also buy the preference share that is attached to that Cell. Purchasing a preference share, as well as a LCA product, can be advantageous. Find out more here.
If you are already registered with us then you can complete a Flexible Annuities Illustration Request form which you can find here. To register with us then please click here or contact us at lca@stmgroup.online.
When the Flexible Life Annuity starts, the annuity payments are calculated using the applicant’s age and the initial premium paid. Using an appropriate mortality table and current gilt yield we calculate the yearly annuity payment that the initial premium would support over the annuitant’s expected lifetime. The level of annuity payments is recalculated each time an additional premium is paid. Please refer to the key features for more information.
Being a unit-linked annuity, the FLA has a tax-exempt sum which is calculated at the start of the annuity and is the amount of annuity that can be taken tax-free each year. If the level of annuity payments exceed the tax-exempt sum, then the excess is potentially liable to UK income tax. You can find out more in our FLA Technical Guide.
Yes. Both of our FLA and FPA products are flexible and therefore income (‘annuity payments’) can be increased, decreased, paused, or restarted.
To make a change please complete this ‘Change to Annuity Payments’ form and email it to us at lca@stmgroup.online.
The Flexible Pension Annuity ('FPA') is a unit-linked lifetime ('pension') annuity, written on a single life basis, and is purchased using crystallised pension assets.
It is available to UK tax residents, who have at least £100,000 to invest, and are looking for flexible tax efficient income ('annuity') payments for life. You and your clients are in control of the income payment amounts, the income frequency and how your client’s investments are managed. These can all be set at outset and varied at any point.
The content of this website does not constitute any form of advice or recommendation and should not be relied upon when making investment decisions.
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London & Colonial Assurance PCC Plc is regulated by the Gibraltar Financial Services Commission. Permission number 5191.
