- Though we guarantee what your clients get back at the end of the plan term, the Guaranteed Maturity Value may buy less in future, as it’s not tied to inflation. The income that it provides will depend on the economic conditions at the time. Other investments without guarantees could give higher returns.
- If your client wants to change their mind about their plan and use the conversion feature, the value of the plan could be lower than the maturity value or even less than they originally paid in. This is more likely if they convert early in the plan.
Fixed Term Annuity:
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Introducing LV’s Fixed Term Annuity
Entering retirement can be stressful. People at this stage can often believe they are required to make a single financial decision that will see them through the rest of their lives.
But there’s a better way.
Unlike a traditional annuity, where clients have to lock-in rates for life, the LV= Fixed Term Annuity offers a guaranteed level of income for a fixed term, offering your clients flexibility, comfort and confidence to manage life’s ups and downs in retirement.
Reasons to choose our Fixed Term Annuity
- Guaranteed income over a fixed term – from 3 up to 25 years.
- Tailored income drawdown – clients can choose their level of income at the start of the plan, without any restrictions on the amount.
- Can be used as a guaranteed investment vehicle – option to select a Guaranteed Maturity Value (GMV) at the end of the plan term, shielding all or some of their capital from market volatility and guaranteeing a known return.
- Optional death benefits – which can protect up to 100% of your clients’ original investment and income if they pass away within the plan term.
- Conversion feature – gives clients the option of transferring to another retirement product, reinvest in another plan, or take as taxable cash – at any time, for any reason.
- Give your clients more – as an investor in our Fixed Term Annuity, your clients benefit from access to our range of exclusive member benefits and potentially our mutual bonus.
Things to consider
Why take out a Fixed Term Annuity?
“Annuities have regained popularity as more clients seek certainty in an unpredictable world. Fixed term annuities provide a tailored approach to retirement at a time when people’s needs and expectations are evolving—whether they want to reduce their working hours, bridge the gap to full retirement, or invest a lump sum without taking on investment risk.
They offer the flexibility for clients to shape their retirement on their own terms, and we believe that’s incredibly valuable.”
Gwen HaggoSales Director
Ready to quote and apply?
To support you, we offer a simple online quote and apply process through our Savings and Retirement Adviser Portal.
If you’ve already registered, please log in to the portal. Otherwise, click 'Register now'.
If you're not quite ready to get a quote, speak to our friendly Business Development Managers on 0800 032 8298, or via email on [email protected]
Who is the LV= Fixed Term Annuity for?
Clients approaching retirement looking for flexibility with their retirement income options
Clients who want the comfort of guaranteeing a known investment return when they opt for a GMV
Clients who want access to benefits exclusively available through being part of a mutual
Clients approaching retirement looking for flexibility with their retirement income options
Case study - How our Fixed Term Annuity could support your clients’ retirement planning
Case study - How our Fixed Term Annuity could support your clients’ retirement planning
Sarah is looking forward to retirement and spending time with her family, but finds the prospect of retirement daunting, so a set income with flexibility throughout is appealing.
At age 60, Sarah invests a £175,000 lump sum with LV=. She chooses a seven-year term and an income of £12,227 per year, with a Guaranteed Maturity Value of £144,490. This is not linked to inflation.
The guaranteed amount at the end of the term gives her comfort and confidence, as fluctuations in her pension make her anxious.
At 64, when markets become volatile, she’s reassured in knowing that her income is fixed for just three more years and her GMV is unaffected by stock market conditions. She also knows that she can use the conversion feature to exchange her Fixed Term Annuity for a lump sum earlier if she needs to.
When Sarah begins to notice signs of illness at 65, she uses LV= Doctors Services to receive a same-day online appointment, giving her peace of mind that she is receiving the care she needs.
At 67, she reaches state pension age, and as her health has declined further, she is eligible for an enhanced annuity. She decides to use her GMV of £144,490 to purchase an income for the rest of her retirement of £13,731 per year. When her state pension is included, this gives her a total yearly income of £25,704 for the rest of her retirement.
Read more about Sarah and what her retirement journey might look like if she chose a standard lifetime annuity.
Fixed Term Investment
Did you know we also offer a Fixed Term Investment giving you clients all the benefits of annuity, within a SIPP wrapper?
Extra benefits
As a mutual, our members are at the heart of our business. Investing in our guaranteed income solutions makes your client a member of LV=, and entitles them to a range of member benefits like 24/7 virtual GP access, Care Navigator and potentially includes our mutual bonus.
Let's talk
To learn more about our guaranteed income solutions, speak to one of our Business Development Managers. You can also call 0800 032 8298 or email our adviser support team.
Alternatively, if you need support with an existing policy or help with our online systems, call us on 0800 032 2990.
Lines are open 9am-5pm Monday-Friday. For TextDirect: first dial 18001. We may record or monitor calls for training and audit purposes.