Key events

Depending on the type of product that you have, there are certain key events that you may experience during the lifetime of your policy. This section gives you an idea of what some of these key events could be and some of the things that you might need to consider at that time.

As Phoenix cannot provide you with financial advice, Phoenix Customer Care has forged a business relationship with 425 Direct, a firm of independent financial advisers. For this purpose, Phoenix Customer Care Limited is an introducer appointed representative of 425 Direct, who are authorised and regulated by the Financial Services Authority. This relationship aims to develop means of providing enhanced financial information and advice to our policyholders. For further information please call our Phoenix Customer Care team on 0845 938 0515.

Maturity

Investment policies
When your investment policy comes to the end of the period that you took it out for you will receive an amount called a maturity value. You may need to consider what you are going to do with this lump sum. Possible options you might want to think about include:

• Pay off or consider changing expensive credit cards.
• Repay your mortgage in full or in part.
• Reinvest into a high interest savings account.
• Reinvest your lump sum into an ISA or other investment.
• Reinvest into a Pension or AVC plan .

For further details on obtaining independent financial advice please call our Customer Care Team on 0845 9380515.

Protection policies
Protection policies do not provide any payment at the end of the term. Once the term ends there is no maturity value or payout. A claim can only arise during the life of the policy. For example, the death of the life assured during the term or another event triggering a valid claim. However, some policies have options that are available at the end of the term. Please look at your policy terms and conditions to see if this applies to your policy.

It is important to remember that at the end of the term cover will cease. You need to think about whether you still need cover or whether you already have adequate cover from another policy.

Questions you should consider at this time include:
Do you still have a mortgage and is there any life cover required to pay this off upon your death?
Do you still have dependants who would require financial support if you die?
What would happen if you were unable to work for a period of time?

For further details on obtaining independent financial advice please call our Customer Care Team on 0845 9380515.

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Surrenders

Due to a change in your financial circumstances, you may be considering surrendering your policy. Not all policies have a surrender value so you may wish to contact us to find out whether your policy has accrued a surrender value. Other options may include making your policy paid up, taking a partial surrender or selling your policy. Before taking any action you should consider whether to take financial advice.

By surrendering your policy early, you are likely to incur surrender charges. If you are unsure whether your policy carries any surrender charges contact us.

How do I surrender my contract?

If you have decided that you need to surrender your policy, please contact us.

Retirement

This is a special event you may have been planning all of your working life. In our view, financial advice should be sought at this time.

State Pension - Are you entitled to any state benefits? If so, do you know what they are and when you will receive them?

For general information about your retirement please see Your guide to retirement 190kb.

Before your retirement date, we will send you an illustration to show how much income a pension with us would pay you each year. We will also give you more information on the options which are available to you and will request any outstanding information.

There are various options open to you and these are outlined below. Unless you delay your retirement, you must use the money that has built up in your pension fund to provide you with an income in retirement (a pension). This income can be provided in any of the following ways:

Option 1 - Buying a pension from us

• You can buy a pension with us. This pension will usually be set up to pay you a monthly income every year for the rest of your life;
  or
• You can take some of your pension fund money as tax-free cash and buy a pension from us with the remaining money.

Option 2 - Buying a pension from another company

• You can use all your pension fund money to buy a pension with any other pension company; this is known as taking the ‘Open Market Option’ (OMO).
  or
• You can take some of your pension fund money as tax-free cash from us, and buy a pension with the remaining money from another pension company (OMO).

If you’re considering the ‘Open Market Option’ here are a few things to bear in mind:

• You may get a bigger pension income from another company for the same fund value.
• Another company may offer different types of pension that we do not; such as an annuity that may provide a higher level of income if you are a smoker or if you have a history of illness (impaired life annuity).

The easiest way to shop around is to go to a financial adviser who should be able to look at all the different pensions on offer.

Types of Pensions

There are different types of pensions, which you can buy. Examples are:

• A level pension, which pays exactly the same amount of money each year until you die.
• An index-linked pension, which pays a higher amount each year, rising in line with inflation, but starts off by paying less than a level pension.

The following pension products are not available through us, but may be available through other pension providers:

• An impaired life pension, which pays more money than a level pension but is only available to people who are in very poor health.
• An investment-linked pension, which is more risky than a level pension because the income paid depends on the performance of the investments. It may pay a higher income than a level pension but it might not.
• A phased retirement, where you split your pension fund into 2, 3 or 4 ‘packets’ with which you can buy pensions at different ages.

For further information on pensions, please see the ABI leaflet People need pensions - don't give up on your savings.

Option 3 - Delaying retirement

• If you do not intend to retire on your retirement date you can keep paying towards your pension until you decide to retire.
  or
• You can stop paying and buy your pension any time.

Further information is available from the Financial Services Authority (FSA); and The Pensions Advisory Service (TPAS).

TPAS is an independent non-profit organisation that provides free information, advice and guidance on the whole spectrum of pensions covering State, company, personal and stakeholder schemes. Their online annuity planner gives general information and guidance, and helps customers with the decision-making process for converting pension fund into income. It is not a calculator, nor does it provide financial advice.

Option 4 - Trivial Commutation Lump Sum

• It may be possible for you to take all your benefits as a lump sum, subject to tax. This option will depend on your combined registered pension benefits meeting certain criteria.

Legislative changes -

From 5 April 2006, there were a number of changes that impacted existing pension plan holders as well as people looking to take out a new pension plan. These changes are collectively known as pensions simplification.

With effect from 6 April 2011, the annual allowance is reduced to £50,000

The annual allowance was introduced on 6 April 2006. It is the maximum amount of pensions savings (pensions input) which can be made by, and on behalf of, an individual in a single tax year, without giving rise to a tax charge.

What’s included in the annual allowance - your pensions input

Although the reduction in the annual allowance is significant, the vast majority of individuals will not be affected by it. To decide if you are affected, you need to ascertain the total pensions input to all of the private and company pensions you are an active member of.

Each of your pension schemes will have a pensions input period (PIP) over which your pensions input to that scheme is measured. The PIP may have been set by you, or by the scheme administrator, and different schemes can use different PIPs.

Where Phoenix is the scheme administrator, the PIP is aligned with tax years, so each 12 month PIP ends on 5 April.

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Claims

Certain policies pay out in the event of circumstances such as death, critical illness, incapacity to work.

Death
If you wish to make a claim on the death of a life assured, please contact us providing details of the policy number and we will inform you of what to do next about the claim.

Critical Illness
These policies cover certain serious illnesses. Please check your policy to see what exactly you are covered for. If you intend to make a claim you will need to complete a form providing details of your claim. Upon receipt of this form we will then review your claim and let you know whether any further information is required before a decision about your claim is made.

Income Protection
Income protection is an income replacement policy that provides cover if you cannot work as a result of an illness or accident.

Please check your policy to see what exactly you are covered for. If you intend to make a claim you will need to complete a form providing details of your claim. Upon receipt of this form we will then review your claim and let you know whether any further information is required before a decision about your claim is made. Contact us if you need to make a claim on your policy.

Pregnancy / Maternity exclusion
Please note, if your policy conditions state that a claim payment may be declined, delayed, or reduced if your illness or injury has been caused as a result of a complication during pregnancy or maternity; we will no longer enforce this policy exclusion.

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