insure & invest

There are generally two types of annuity - a life annuity and a pension annuity.  

Investing for Income:  This section deals with life insurance investment annuities which is known as a Purchased Life Annuity (PLA).

Factfile: Purchase Life Annuity

Lump sum investments: Yes

Regular premiums allowed: Generally - No

Flexible payments allowed (stop/start/additional/increase/decrease): No

Investment Risk Profiles Available:

• No Risk funds available
• Low Risk funds available

Changing funds and risk profile allowed: No

Moving to another company allowed: No

Life Insurance Included: No

Personal Tax Benefits:

• Capital gains tax free
• No personal liability to income taxes investment element of 'income' payment
• Subject to taxes for the non-investment income element

Can be held inside Trust: No

Suitable For:

• Adults Non Tax Payers
• Basic Rate
• Tax Payers
• High Rate Taxpayers

Insolvency Compensation Limits:

• Insurance Company Funds - 90% of total funds invested. No Limit.
• Company Pension Funds - 90% of total funds investment.

Brief Description:

A purchase life annuity is generally purchased with a lump sum, although at least one type can be purchased by paying regular premiums.  It is a contract made between the annuity provider and the person taking it out (called the annuitant) to pay an amount of money each year, or at intervals throughout the year, in return for the payment from the annuitant.  Annuities can be set up to be paid monthly or annually in advance or arrears, with or without increases, spouses benefits and guarantees. The more features that are added on, the more expensive the annuity will be to buy.   This section provides details of all the different annuity options you can consider.

Request expert advice today or visit our Investment Shop and choose your own investment.

Pensions and pension annuities and at retirement options can be found in Annuity Bay.com and Pensions Adviser.com.