Variable Annuity
Variable Annuity
The Variable Annuity is a single premium policy which allows the policyholder to invest into a series of assets, with the intention of paying an annuity to the annuitant at a point in future.
The Variable Annuity allows 4 annuity options:
- Annuity for agreed period.
- Annuity for Life with an Agreed Guaranteed Term.
- Life Annuity.
- Joint & Survivor Annuity.
Upon death of the life assured, the policy pays the remaining fund value to the chosen beneficiaries.
The policy is designed to follow Internal Revenue Service code 1986 and is classified as a Variable Annuity.
The policy allows access to assets and allows discretionary management.
The value of the investments will dictate the value of the Bond. The bond should follow section 817h (Diversification of Assets) of the IRS code, which states:
- No more than 55 percent of the value of the total assets of the account is represented by any one investment;
- No more than 70 percent of the value of the total assets of the account is represented by any two investments;
- No more than 80 percent of the value of the total assets of the account is represented by any three investments; and
- No more than 90 percent of the value of the total assets of the account is represented by any four investments.
Basic Features
| Investments | Open Architecture (Diversification of assets applies - Section 817H) |
| Withdrawals | Yes - subject to minimum remaining policy value USD50,000 |
| Death Benefit | Surrender Value - can be deferred and spread over 5 year period after death of Life Assured |
| Surrender | Yes |
| Assignments | Not Applicable |
| Additional Charges | Investment Adviser |
| Additional Notes | Once annuity start date commences, regular annuity payments apply to beneficiary(s) |
| Policy Currency | Policy Currency in GBP & USD |
| Segments | No segmentation rules applied. |
| Adviser assigned | Self-Advised |
| Charges | Charges will be deducted quarterly on policy anniversary based on the policy value. |