Annuity Services and Products

In traditional markets, annuity products are used for growth or to deliver income. In general, insurance companies are the only ones who can distribute these annuities, where delivery of revenue was assured for life. That said, for offshore markets, these type of annuity are not generally available. However, there are a few available which fall into two types of annuity categories, namely, 1) Investment and 2) Private Placement Variable.

Annuity Categories:

  • Investment
  • Not readily available for residents or Citizens of Canada and the United States
  • Are backed by the claims-paying ability of insurance companies with death benefit guarantees
  • Avoid probate with the ability to name such beneficiaries as required
  • Guarantee Principal and Interest fixed accounts
  • Can be diversified through a selection of VIOs (Variable Investment Options).
  • Dollar Accounts (US)
  • The client can complete transactions in their own country
  • There is an option for averaging automatic dollar costs
  • The accounts are managed through recognized International Investment Managers
  • There is a minimum investment of $50,000 (Approval will be required from the Issuing Insurance Company on amounts over $2m)

Private Placement Variable

  • These type of annuities are limited to clients who have a net worth that is surplus to $5m
  • Lowest possible Single or Cumulative Premium of $1m
  • PPV’s are predominantly for US taxpayers
  • Preferred Investments are the alternative investment strategies
  • Deferral of Tax is largely until the Funds are withdrawn or up to the age of 85 if the individual is a US taxpayer
  • With these type of annuities, the Offshore Insurance Companies who issue them are not required to meet the State insurance regulations or rules
  • These investment annuities are separated into different accounts and do not form any portion of the assets of Insurance Companies
  • Completion of all transactions must be made Offshore