A Fixed Term Annuity Plan offers clients a fixed income (if required), to the the current Government Actuary’s Department (GAD) maximum, together with a Guaranteed Maturity Amount at the end of the chosen term which is unaffected by stock market volatility. Fixed term annuities also offer a range of optional death benefits. These fixed term annuity plans usually have terms from 3 years, however, once selected at the start of the Plan term, benefits cannot be changed.

Features
• Keeps client options open – more flexibility than a lifetime Annuity
• Ability to select income level at outset for the chosen term
• Guaranteed Maturity Amount (GMA)
• Choice of death benefits
• No annual management charges
• No investment performance risk
Source: Living Time

The main advantage of these fixed term annuities is that they offer a Guaranteed Maturity Amount (GMA) at the end of the chosen term, which gives the retiree a second chance to buy an annuity. With some providers such as Living Time, the GMA is fixed and not affected by investment performance.

If health has deteriorated when the GMA is paid then an annuity at enhanced rates may be purchased, subject to underwriting by the annuity provider. Alternatively, you can roll the product into another fixed term.