U.S. Deferred Variable Annuity Policy

U.S. Deferred Variable Annuity Policy

The U.S Deferred Variable Annuity (DVA) is a single premium deferred annuity Policy, the value of which is variable, depending on the performance of the Policy’s underlying assets and is subject to fluctuation. It is intended to increase the value of a Policyholders investment and provide a lifetime income (an annuity) at a retirement date selected by the Policyholder from age 59 ½ onwards.

The Policy enables investment across a wide spread of different funds and other asset classes which can be used to meet Policyholders financial objectives. The appointed Investment Manager will make the decisions to buy or switch the assets within the Policy. The level of risk and potential investment performance will depend on the investment strategy and the assets invested in through the Policy which are selected by the Investment Manager.

The Policy should be treated as an annuity contract governed by the provisions of Section 72 (Annuities: Certain Proceeds of Endowment and Life Insurance Contracts) of the Internal Revenue Code (IRS Code).

Although it is arguable that the Policy does not technically constitute a “variable contract” within the meaning of Section 817(d), the Policy should meet the diversification requirements of Section 817(h) of the IRS Code (Section 817 – Treatment of Variable Contracts).

Note: The policy can also be issued to non-US residents and takes the form of an international annuity contract, where the same product rules apply.

Basic Features