PURCHASED LIFE ANNUITY KEY FEATURES

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1 seeing retirement differently seeing retirement differently PURCHASED LIFE ANNUITY CELEBRATING CELEBRATING YEARS sin ce YEARS sin ce

2 HELPING YOU DECIDE The Financial Conduct Authority is a financial services regulator. It requires us to give you this important information to help you to decide whether our Purchased Life Annuity is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference. WHAT IS THE PURPOSE OF THIS DOCUMENT? This document is designed to give you a summary of information to help you decide if this product is suitable for you. We would recommend that you discuss your plans with anyone who may be affected by your financial decisions. Before you make a purchase, you should read this and all other related documents and clarify any questions that you may have. The policy document containing all terms and conditions is available on request. If you are in any doubt about the suitability of this annuity you should seek advice from a Financial Adviser.

3 CONTENTS 04 IS THE PARTNERSHIP PURCHASED LIFE ANNUITY RIGHT FOR YOU? 04 ITS AIMS 04 YOUR COMMITMENT 04 RISKS 05 QUESTIONS AND ANSWERS 08 HOW DO I APPLY? 09 OTHER IMPORTANT INFORMATION

4 IS THE PARTNERSHIP PURCHASED LIFE ANNUITY RIGHT FOR YOU? This product is suitable if you wish to receive a guaranteed income for the rest of your life from money that you have invested that is not part of a pension fund. You understand that none of the money invested will be returned to your estate on your death. The Partnership Purchased Life Annuity is particularly suitable if your health and lifestyle may lead to a reduced life expectancy. Retail clients We categorise our clients to determine the level of protection they will receive. All clients in respect of annuities are treated as retail clients. This gives the highest level of protection available under the Financial Conduct Authority rules. ITS AIMS To provide you with a regular income for life To give you the option of increasing your income annually to protect your income against the effects of inflation To give you additional options for payments to continue after your death YOUR COMMITMENT To make a single, lump sum payment to buy your annuity To give complete and accurate information on your application Buying this annuity is a one off decision. Once you have bought one, you cannot change the terms of your annuity RISKS If you do not truthfully provide all of the information we request, your annuity may be lower than it could be. If you exaggerate the extent of your smoking, you could fail the smoker test and not qualify for smoker rates. Inflation will affect the buying power of the income payments you receive over time. If you choose to link your payments to inflation it could increase or decrease your payments over time: In the event of negative inflation (deflation), your income would be reduced and could be lower than it was at the start of the annuity. Unless you have selected a guarantee period or dependant s benefit, annuity payments will cease when you die. This means that your income payments may be less than your total investment if you die within a short time from the start of the annuity. The present tax treatment can change which may increase the amount of tax payable and reduce the income payments. 04 PURCHASED LIFE ANNUITY

5 QUESTIONS AND ANSWERS What is a Partnership Purchased Life Annuity? A Partnership Purchased Life Annuity gives you a guaranteed income for the remainder of your life. You pay a single premium which must come from a private source, but can include a Pension Commencement Lump Sum. When calculating the amount of income you can receive from your annuity, Partnership will also consider the answers you give for the medical questions on your application form. As a result, we can offer you a higher income than an annuity based on healthy lives. In return for this single payment, we will pay you a regular income for the rest of your life. Details of your income are contained in your illustration or quotation. The income is guaranteed and does not depend on the performance of any investments. There will be no return of capital to your estate from your annuity when you die, regardless of when that happens, but there are additional options you can select that allow your beneficiaries to receive an income after your death. These are explained in greater detail below. How much income will I receive from my investment? The income you will receive is based on a number of factors, including the size of your investment, your state of health and/or the extent of your smoking at the time you apply. If you select any of the additional options available, your income payments will be lower. Your income payments will commence when we have issued acceptance terms and have received your payment. Income payments are usually made net of income tax. The tax treatment of Purchased Life Annuities is further explained on page 6 under the heading What are the tax implications?. What can I do to help protect my income against inflation? Inflation will reduce the purchasing power of your income over time. To protect the value of your income against the effects of inflation you can choose to increase or escalate your income each year. If you choose this option the starting level of income will be reduced. The higher the level of escalation, the lower the level of starting income. If you select this option, it cannot be changed once the annuity starts. Fixed rate escalation You can choose to increase your income each year by a fixed rate of between 1% and 10% per annum. Inflation linked Linking your income to inflation means that your income varies in line with the Retail Price Index (RPI). If you do not opt to have any inflation protection and live a long time, the real value of your income payments may be less overall. PURCHASED LIFE ANNUITY 05

6 Can I protect my investment in case I die early? Guaranteed Period Selecting this option guarantees that the income will be paid for between one and ten years from the start of your annuity. This means that, should you die within this time, your beneficiaries will continue to receive a regular income at the same rate as yours. Can I provide an income for others when I die? Dependant s Benefit You can choose for up to 100% of your annuity income to be paid to your dependant in the event of your death, for the rest of their life. Dependency will be assessed at the start of the annuity. If you choose a guaranteed period and a dependant s benefit, then the dependant s benefit will not commence until the guaranteed payments have finished. What are the charges? All of our administration charges are factored into the cost of your plan at the start and we will not make any additional charges. If you have received financial advice, you may use your plan to pay for the advice. This is known as the adviser charge and is the amount you have agreed to pay the adviser for advising on and recommending your Partnership annuity. If you have not received advice, commission may be payable to the intermediary in respect of administration or other charges incurred for arranging the plan. Commission is not a payment for financial advice and cannot be paid in conjunction with the adviser charge. Partnership will not pay an adviser charge or commission if your application does not proceed but will not refund an adviser charge if the policy is cancelled. If you do decide to cancel within this 30 day period, we will refund your money in full, less the Adviser Charge (if paid by Partnership) and any annuity payments already made. What are the tax implications? A Purchased Life Annuity comprises two elements a capital element and an interest element. You will have to pay Income Tax at your personal rate but only on the interest element. Your quotation will show details of the interest and capital elements. Income tax at the basic rate is deducted at source from the payment. Higher rate tax payers will have to account for any higher rate tax in their tax return. Non tax payers may apply to have income payments made gross of any tax deduction. The income tax payable on a dependant s benefit or guarantee period will be dependent on the recipients own personal tax rate. Taxation is a complex matter and differs from person to person, so if you have any questions about your tax liability, you should discuss them with a Financial Adviser. The rules governing taxation are subject to review and can change and depend on individual circumstances. 06 PURCHASED LIFE ANNUITY

7 What happens when I die? Unless you have a guaranteed or dependant benefit option, your policy will cease. Your executor or representatives must contact us immediately either by telephone or in writing to let us know. Contact us by telephone: Or write to us at: Partnership Mowden Hall, Staindrop Road, Darlington DL3 9AX. What happens if I change my mind? You have the right to change your mind within 30 days of receiving your policy. If you do decide to cancel within this 30 day period, we will refund your money in full less the adviser charge you have instructed us to pay. If we do not receive your cancellation notice within the 30 day period we will automatically continue your annuity. Your investment will not be returned to you and you will not be able to transfer it to another provider. You can contact Partnership using the details on the back page of this brochure. How flexible is it? Please note that your circumstances could change after your income payments start but you won t be able to change the terms of your annuity, even if annuity rates improve. Once set up, then you cannot change the terms of your annuity. PURCHASED LIFE ANNUITY 07

8 HOW DO I APPLY? You will need to fill out an application form, which asks for detailed information on your health and lifestyle, in order for us to accurately assess if you qualify for a higher annuity income. We may need to verify or get more information on the answers you supply in your application form. To do this we may: Contact your doctor Your doctor will be able to supply us with a General Practitioner s Report (GPR). However, we will not always apply for a GPR so it is essential that you answer the questions on the application as fully and accurately as possible. Ask smokers to undergo a simple non-invasive test We may ask you to undergo a simple non-invasive test and require you to confirm how much you smoke. The test, which we will arrange and pay for, is carried out by a qualified nurse in your own home. If you fail the test and you want to take it again we may charge you a small fee for doing so. The nurse will also verify some of the information you provided. No matter what you will not, at any time, be asked to undergo a medical examination. It is important that you disclose all material information on your application as this is important information for us to determine the level of income you receive. If at any time there is found to be any mis/non-disclosure of your health conditions and the extent of your smoking habit, Partnership reserves the right to refuse your application or amend the terms of the annuity. 08 PURCHASED LIFE ANNUITY

9 OTHER IMPORTANT INFORMATION Law Your annuity will be governed by the law of England and Wales and your contract will be written in English. We ll always write and speak to you in English. Compensation The Financial Services Compensation Scheme will prevent a customer from losing money because the insurer is unable to pay them what they owe due to financial reasons. In this event the scheme will arrange to transfer your annuity to another insurer, provide a new annuity or, if this is not possible, provide compensation. The scheme will ensure you will continue to receive 100% of your annuity payments. Further information about compensation arrangements is available from The Financial Services Compensation Scheme, who can be contacted at: The Financial Services Compensation Scheme 10th floor, Beaufort House, 15 St Botolph Street, London, EC3A 7QU Telephone: or enquiries@fscs.org.uk Website: Queries and complaints If you received financial advice, you should contact your adviser in the first instance. If you would like further information, or have any queries or complaints about any aspect of our service please contact: Complaints Team, Partnership, 1-3 Queensway, Redhill, Surrey RH1 1QT Telephone: If you are not satisfied with the way a complaint is handled, you can contact: Financial Ombudsman Service Exchange Tower, London E14 9SR Telephone: (for fixed line telephones) (for mobile telephones) complaint.info@financial-ombudsman.org.uk Website: Making a complaint does not affect your right to take legal action. Full written details are available on request. PURCHASED LIFE ANNUITY 09

10 How to contact us You can find more information about Partnership at: You can contact us by phone, fax, or in writing using the details on the back page of this brochure. This document does not include all definitions, exclusions or terms and conditions and it should be read with your illustration/quotation and/or your policy document. The policy document is available on request. All details are correct at the time of going to press (June 2015). 10 PURCHASED LIFE ANNUITY

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12 Regent House, 1-3 Queensway, Redhill, Surrey RH1 1QT * *Telephone calls may be recorded for training and monitoring purposes. Local call rates apply. If you require this document in an alternative format please contact us. Partnership is a trading style of the Partnership group of Companies, which includes; Partnership Life Assurance Company Limited (registered in England and Wales No ), and Partnership Home Loans Limited (registered in England and Wales No ). Partnership Life Assurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Partnership Home Loans Limited is authorised and regulated by the Financial Conduct Authority. The registered office for both companies is 5th Floor, 110 Bishopsgate, London EC2N 4AY. RET