How the plan works

The plan is based on a single life and the income a client receives will depend on their own personal circumstances, which we will collect during the application process. To obtain a quote, simply use the quote tool to generate an estimate of what income your client might receive. Alternatively, a quote can be produced on a target income basis. The quote-and-apply system also offers you a comprehensive whole-of-market income comparison against standalone underwritten annuities.  

The income from the plan is level and does not increase. It ceases once the client dies. Income is paid monthly into the client’s Pension Cash Account on the 15th of each month (or the prior working day if the 15th is not a working day).

Standard Life’s charges are incorporated into the income a client receives from the plan, although it does not facilitate any adviser fee payments (these can be set up separately through our Adviser Fees service).

Value Protection is designed to guarantee your client will get back the equivalent of the purchase price of the Guaranteed Lifetime Income Plan in the event of their death. If they die, a lump sum benefit may be paid into their Product Cash Account. This option must be selected at outset.

• The lump sum payable will be the amount your client originally used to purchase the plan less the total amount of income paid. This effectively means that, in total, the client is guaranteed to receive back at least 100% of the purchase price of the plan.  
• Once the income received from the plan is more than the purchase price, Value Protection will no longer pay a lump sum.

So, if a client purchases a plan for £100,000 and dies having only received £30,000 in income, the remaining £70,000 will be paid into the Product Cash Account as a death benefit and can be made available alongside their other remaining drawdown funds for their chosen beneficiaries. Lump sum payments may be subject to income tax.

If Value Protection as a death benefit option is chosen, it will reduce the amount of income the client will receive for a given purchase price.

Jackie is aged 60 and in good health. She purchased the plan with Value Protection as a death benefit using £50,000 from her Pension Account. She receives a gross income of £3,000 a year into her Product Cash Account, which is paid monthly. You can see below how much would be paid out as lump sum death benefit from the plan depending on when she dies.

In this example, it will take over sixteen years of regular guaranteed lifetime income payments to Jackie before the amount payable on death reduces to zero.

The above example is for illustrative purposes only and does not represent actual income.