Later Life Account

Our Later Life Account (‘LLA’) is a flexible unit-linked purchased life annuity, written on a single life basis. It is designed to provide sufficient funds for your client to pay for care costs in the future. The annuity payments are flexible which allows your client the freedom to choose the level of income they need at outset, then adjust the level and frequency of payments whenever they wish. Annuity payments can be made directly to your client, to UK registered care providers, or both. One-off payments are also permitted to cover any one-off care related costs and are paid directly to your client.

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Product features

Eligibility

UK tax resident aged 40 and over. No maximum age. Single life basis only.

Premium

Initial minimum premium of £50,000, with no maximum. Additional investment ‘top-up’ amounts are allowed, with a minimum amount of £10,000.

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.

One-off income payments can also be taken to pay for care related costs.

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 LLA 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 by visiting our secure document library.

The LLA is designed for individuals who:

1) are aged 40 and over, and live in the UK

2) have at least £50,000 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) are looking for an investment that can provide regular payments to pay for receiving care assistance in the future

6) have used their ISA or pension allowance and could benefit from other ways to invest tax-efficiently

7) want the ability to top-up their annuity.

The LLA is not suitable for individuals who:

1) are non-UK tax resident

2) are aged 39 and under

3) don’t have £50,000 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.

Got a new enquiry?

If you are already registered with us then you can complete a Flexible Annuities Illustration Request form which you can find in our secure document library.

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?

If you need to change the level or frequency of the income payments, inform us of a death, or maybe you need to tell us about a change to your client’s circumstances, you can visit our contact us page to find out who can help you.
You can also read through our Frequently Asked Questions to find out more information.
If you need help with any technical product queries, then please speak to your dedicated LCA Business Development Manager.

Useful documents

We have a range of important documents to provide you with more information about the FLA.

We also have some documents to help with your conversations with your clients:

Helpful support aids

As an adviser you are aware of the various solutions available when your clients wanting tax efficient solutions and to retain an income whilst mitigating inheritance tax.

We have written some case studies which demonstrate how the Later Life Account can help in your client’s portfolio. Read our case studies in our secure document library.

Other Products

Flexible Pension Annuity

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.