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Later Life Account

Our Later Life Account (‘LLA’) is a flexible investment linked purchased life annuity where you control the amount and frequency of the income (‘annuity’) payments. Investment linked means that the value of your annuity is linked to the performance of your chosen investments, which can fall as well as rise.

The LLA is designed to provide sufficient funds for you to pay for care costs in the future. Annuity payments can be made directly to you, to UK registered care providers, or both. One-off payments are also allowed to cover any one-off care related costs and are paid directly to you.

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Benefits of the LLA

Income

1) The LLA is designed to provide you with income but with added flexibility so that you can adjust the income to your current and future needs. You can increase, decrease, pause, and restart your income payments. The purpose of the LLA is to provide you with sufficient funds for any care costs in the future, therefore this needs to be considered when deciding on income payments.

2) The income is tax-efficient. There is a part of the income that is tax-free, this is called the Tax Exempt Sum (‘TES’). At outset we calculate the TES in line with HMRC rules. The TES remains constant and only changes if you make additional ‘top-up’ investments into your annuity. The good news is that if you don’t use it all in one year it can be carried forward to future years.

3) One-off income payments are allowed and can be requested to cover one-off care related costs such as installation of a stairlift at home.

Premium

Unlike traditional annuities, additional sums or ‘top-ups’ can be added. The minimum amount is £10,000, with no maximum limit.

Being investment linked means that your money can continue to benefit from potential investment returns. Just remember that the value of investments can fall as well as rise and returns may be lower than you expect.

The LLA is designed for individuals who:

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

2) have at least £50,000 to invest

3) need tax-efficient income that can be adjusted

4) want their money to remain invested to benefit from potential growth on 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 make additional ‘top-up’ investments into their annuity.

The LLA is not suitable for the following individuals:

1) non-UK tax residents

2) those aged 39 and under

3) individuals who don’t have £50,000 to invest

4) those who don’t want to remain in the investment market or aren’t prepared to accept potential investment risk

5) individuals who need guaranteed annuity payments.

Support for new and existing customers

New customers

Our products are only available to customers that have received financial advice. If you need help in finding a financial adviser, please read our helpful guide here.

Existing customers

1) Request a change to the amount or frequency of income payments: we recommend speaking to your adviser first of all. We will then need this form to be completed and returned to us by your adviser.

2) If you would like your income payments paid to a different bank account or your bank details have changed, please complete this form and return it to us.

3) If you need to tell us about a change in personal circumstances such as your name, address, or email, then complete this form and return it to us.

4) If you need to notify us of a death, please contact our Customer Services Team. Their contact details can be found here.

If you would like to know more, we have some useful guides to help

 

1) Gibraltar Jurisdiction Facts

2) Later Life Account Essential Facts

3) Essential Facts of a Protected Cell Company

 

Alternatively, you can speak to you financial adviser to find out more, or contact our helpful Customer Services Team.

Top 5 frequently asked questions ('FAQs')

View all FAQs

Our products are only sold through advisers. We do not offer our products directly to customers. If you would like some help in finding an adviser then you can learn more here.

When you buy one of our products the investments (funds) that we purchase with your premiums are placed into a ‘Cell’. As a separate cash transaction you 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. For more information please speak to your financial adviser. 

When the Later Life Account 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.

With the LLA there is a part that is tax-free (this is called the tax exempt sum) and there is a part that may be liable to UK income tax. As this depends on your personal circumstances you should speak to your financial adviser.
You can find out more in our LLA Essential Facts document.

Yes. We allow additional premiums, or ‘top-ups’, to be added to all of our flexible annuity products. The minimum amount you can top up to the Later Life Account is £10,000. There is no maximum limit.

If you wish to add an additional premium, please contact your financial adviser who can help you with this.

Other Products

Flexible Pension Annuity

The Flexible Pension Annuity ('FPA') is an investment linked lifetime pension annuity that gives you more freedom to:

1) choose the level and frequency of income payments, at outset, and then adjust that level whenever you wish.

2) to remain invested in the market (just remember that the value of investments can fall as well as grow).

3) consolidate pension pots by adding further crystallised pension assets.

Find out more here
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