LEGAL & GENERAL'S INDIVIDUAL ANNUITY BUSINESS ANNOUNCES A 40 DAY RATE GUARANTEE PERIOD FOR GENDER SPECIFIC RATES.
16 November 2012
Legal & General's individual annuity business announces a 40 day rate guarantee period to help customers secure gender specific annuities ahead of the G-Day cut-off date
Ahead of the introduction of the EU Gender Directive, which requires annuity providers to introduce gender neutral pricing for annuities from 21st December 2012, G-Day, Legal & General's individual annuity business has announced it is extending its normal 18 day rate guarantee period on gender specific quotes to 40 days.
The 40 day rate guarantee period will apply to all gender specific annuity quotations from Saturday 1st December through to close of business on Wednesday 19th December 2012.
Legal & General's annuity business will then offer gender neutral annuity rates from Thursday 20th December, a day early than the 21st December 2012 cut-off date, which has been set by the Government. This means for customers to secure a gender specific annuity rate, the fully completed and signed application, with all the necessary supporting documentation, needs to be received by Legal & General before midnight on Thursday 20th December 2012.
So for those customers who wish to arrange their annuity with us using gender specific annuity rates, they will need to have received a gender specific quote from us by Wednesday 19th December, at the very latest. We will then need to receive their application before midnight on Thursday 20th December and we need to have the funds received and cleared within 40 days of the quotation date. So, if the quote was dated 19th December 2012, then the cleared funds need to be with us by close of play on Monday 28th January 2013, at the very latest. The rate guarantee period includes weekends and bank holidays.
Tim Gosden, Head of Strategy for Legal & General's Individual Annuity business commenting on the new arrangements said: "We were really concerned that customers could find it difficult, particularly over the holiday period, to ensure that we receive the cleared funds that are required to set-up their annuity, on time. So we sought advice and had confirmation that we are still able to set-up gender specific annuities for customers after the 21st December deadline, provided we receive their application before G-Day. After this date gender neutral rates must be applied.
We are advising potential customers who want gender specific rates to make arrangements as soon as they can to ensure that the cleared funds and their application are with us in plenty of time. Our arrangements are designed to offer our customers the best possible chance of completing their annuity on the basis that they were quoted. However, customers need to check the time required for the funds to clear, as the time required does vary. Waiting to transfer funds at the last minute could result in the funds not being cleared in time and this could then mean that they may miss out."
If cleared funds are not received within the quote guarantee period, which is after G-Day, then a customer's annuity will be set-up on the gender neutral rates that will then apply.
There are more details on the arrangements we have in place on our website, at www.legandgeneral.com\annuities. Advisers will find more information on the Legal & General IFA Centre or they may get in touch with their normal Legal & General contact, who will be able to help.
Tim Gosden continued: "This legislative change will impact many of our customers and so we are making them and their advisers aware of our transitional arrangements in good time. Annuities are a one-off purchase so changing our annuity rates to a gender neutral basis as late as possible, coupled with the extended 40 day quote guarantee period, provides reassurance to customers that they should be able to complete their annuity purchase on the gender specific rates basis that they want."
Notes to editors
Background on Legal & General's annuity business Legal & General is one of the UK's leading financial services companies and one of the UK's top 50 companies in the FTSE 100 Index. Legal & General provides annuities to over 550,000 current pensioners and over 200,000 deferred pensioners. Legal & General has been an active participant in the insurance solution pension de-risking market for over 25 years and is regarded as one of the leading annuity providers in the market.
The information contained in this release is intended solely for journalists and should not be used by consumers to make financial decisions.
Legal & General Assurance Society Limited. Registered address: One Coleman Street, London EC2R 5AA. Registered in England No 166055.
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