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Impaired Life Annuities in action

The illustrations should be taken as a guide only, all annuity rate illustrations are subject to change without notice and the final decision on the amount of annuity payable to each applicant is subject to full medical underwriting of each impairment.

Example 1:  Open Market Option
Three different illnesses have been chosen that a typical 65 year old male could suffer from. For each illness a life expectancy category has been selected and the corresponding annuity rate has been shown. In each case the Open Market Option amount after tax free cash is £100,000 and the annuity is on a single life basis, payable monthly in advance, payable to the annuitant for life without guarantee.

Long term life expectancy
Long Term Diabetic - £8,447.40 per annum.

Short term life expectancy
Cancer/Kidney Failure - £9,474.24 per annum.

Highest Standard Annuity
£7,199 per annum.

Example 2:  Purchased Life Annuities
Only part of the proceeds of these annuities, is classed as income, for tax purposes. Each payment received by the annuitant, is made up of two parts, an income element and a capital element. Only the income element of the annuity could be taxable.

Many people choose to buy a Purchased Life Annuity with the Tax Free Cash that they receive from their pension, or alternatively from their savings.

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