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GE Life relents on impaired annuity

Professional Solutions IFA director Mark Ryan has won a battle with GE Life after confusion over placing an impaired life annuity.

Ryan was quoted a rate of 6.5 per cent on a £22,000 impaired life annuity but subsequent quotes were reduced by the company to 5.5 per cent. This left Ryan being forced to revisit the client, requote and write a new suitability letter.

GE Life says it reduced the rate once it realised that the £22,000 was made up of three separate annuity pots.

But Ryan says he had already explained to GE Life for the original quote that the monies would be coming from three different pension providers, with the sums all under £10,000. After speaking to Money Marketing and writing to the company to demand compensation, Ryan says GE Life has conceded that there were communication errors and has honoured the original rate.

Ryan says: “GE Life has now honoured the original quote. I just wanted to warn other advisers they need to be aware of this. GE Life has now made it clear this should not have happened in the first place.”

GE Life product manager, annuities Matt Trott says: “The legislation can get very difficult and technical. But there was a breakdown of communication and the IFA was left with the wrong message and so we have agreed to amalgamate the three policies.”

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