How does the Longevity Income Plan work?
Your investment into the Plan, and therefore the income you will receive from it, grows in two ways:
through the performance of your investment in a range of carefully selected funds and, uniquely ,
through the allocation of additional fund units, called Birthday Units, to your Plan each year.
Where do Birthday Units come from?
We are able to award annual Birthday Units because instead of holding onto the investments of Planholders who have died or surrendered their Plans each year, we share them out among remaining Planholders. This enables the Plan to generate enhanced income returns above and beyond the performance of typical investment products.
And because you will receive more Birthday Units the older you get, you could receive more income with each passing year of your Plan.
The graph below shows how the addition of Birthday Units has the potential to significantly enhance the income returns from the Plan:
Based on a male aged 65 making a £50,000 investment into a 75 Plan. Based on a 7% life fund growth rate per annum net of 5% initial charge and related expenses, assuming that Planholder longevity is in line with PA 92 mortality tables.