The Bourse Living Annuity (the “Plan”) is a flexible annuity product where an individual retains the longevity and investment risk but where assistance is given in managing those risks.

The Plan is a single premium retirement savings policy equal in value to an individual annuity fund for each annuitant which may comprise an individual portfolio of bonds, shares and bank deposits (an “Annuity Fund”). Each Annuity Fund is managed by an Investment Manager who may be appointed by the client but who must be approved by Bourse Life and Pensions Limited (“Bourse Life”).  The general conditions in relation to the Plan can be provided on request from Bourse.

Benefits
On retirement (or as otherwise agreed with Bourse Life), a pension determined by Bourse Life in accordance with the terms indicated in the Policy will be debited to the Annuity Fund. If the value of the Annuity Fund reduces to zero then all benefits will cease, no further benefits will be payable and the Policy cancelled.

Benefits can be flexible but should be appropriate to the value of the Fund. They are reviewed during the term of the Plan. The Living Annuity Plan is available in two versions, one which can be surrendered and one which cannot. The benefits may include one or all of the following:

• Retirement Pension
• Survivor’s Pension
• Children’s Pension
• Lump Sum on Death

The value of the Living Annuity Plan is not guaranteed and so the value of the Plan can go up or down over time.

Investment
The Annuity Fund is managed by the Investment Manager appointed by Bourse. This appointment is made after consultation with each client. The Annuity Fund invests in bonds, equities, mutual funds, cash etc. Investment guidelines are agreed in consultation with each client. Investment resulting from policyholder selection is not permitted. On our behalf, the Investment Manager arranges Annuity payments directly to a client’s bank account. If the Annuity Fund is held in cash, the funds will be held in a call account.

Tax
If clean capital is used to buy the policy, and the policy is written by reference to the end of a human life, then that annuitant should benefit from an exemption from income tax on a return of the capital element. All other payments will be taxable.