LV= is launching a tool for advisers which compares the suitability of fixed-term annuities against lifetime annuities.
The first of its kind, the tool analyses the extent to which annuity rates, or the client's circumstances, would need to change for them to be financially better off with a fixed-term annuity.
The tool allows advisers to input possible changes to health, circumstances (such as the death of a spouse) and annuity rates, to provide detailed charts showing whether a fixed-term or a lifetime annuity provides a better financial outcome. The charts can then be downloaded and used as part of client presentations or recommendations.
Vanessa Owen, LV= Head of Annuities and Equity Release, said: "As part of our commitment to support advisers, we are the first to launch a tool that provides real clarity when advising on fixed-term annuities. The theory behind a fixed-term annuity is well known, offering clients the ability to benefit from future changes in annuity rates, health or personal circumstances. However, the extent of change that needs to take place for a fixed-term annuity to be more beneficial has been difficult for advisers to quantify. With our tool it is possible to provide a detailed comparison of the different retirement income a fixed-term or lifetime annuity offers."
Advisers can access LV='s fixed-term annuity tool through its retirement website www.retirementcentre.lv.com/, where a video tutorial on how to use the tool can also be viewed.
The annuity tool launch follows LV='s recent Fact and Fiction report, a detailed analysis for advisers of when a fixed-term annuity can be more suitable.
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