How It Works
How It Works
The Capital Guarantee
Client's can benefit from the peace of mind that the value of their investment is protected against potential market downturns with our capital guarantee. We call this the Secure Capital Option.
With the Secure Capital Option your clients can secure their initial investment and, providing no withdrawals are taken, they will never get back less than they invested at the end of the term. We call this their Secure Capital Value.
As well as protecting the initial investment, the Secure Capital Option also provides the opportunity to capture growth. At each policy anniversary we review your client’s investment and if it has grown above their Secure Capital value we will lock-in the higher figure. If however- it has fallen, the value remains the same as the initial investment or the previously locked in figure.
If your clients are looking for an income in retirement our Income Guarantee could be the right solution. We call this the Secure Income Option and we guarantee an income for life regardless of market conditions. If your clients do not want to take an income straight away they can choose to defer this decision until a later date and benefit from annual 4% increases for each year full year they defer – guaranteed.
Immediate income.
The guaranteed income for life* is based on the amount your client invests and their age at the time they choose to take income. The initial investment sets what we call the Secure Income Base. Guaranteed income can be paid on a single life or joint life. If income on a joint life basis is selected, the age-related income percentages, referred to as Guaranteed Income Percentages, will be 0.25% lower and based on the younger life.
The table below shows the Guaranteed Income Percentages that are used to calculate the guaranteed income.
* Please note, the Secure Income Option offers a guaranteed income for life, the capital investment is not guaranteed.
Guaranteed future income
By deferring the commencement of income, your clients will benefit from higher age related income percentages, and for each full year that is deferred we will increase their Secure Income Base by 4.25% of its initial value, annually guaranteed.
What are Secure Income Reviews?
Your client’s can also take advantage of any market growth with our annual Secure Income Reviews. These lock in any gains made to their Secure Income Base.
The Secure Income Reviews work in a similar way to the Secure Capital Reviews. If the fund value grows above the Secure Income Base, we will lock-in this new higher figure.
If the market has fallen, the Secure Income Base won’t be impacted – remember it’s guaranteed. And, if your client has delayed taking an income, their initial Secure Income Base will still grow by 4.25% for each full year income is deferred.
The graph below illustrates how the Secure Income Reviews work. Each year, on the anniversary of the initial investment, we will undertake a Secure Income Review. If at this review the market has grown, so too will the Secure Income Base. If however the market has fallen, but your client hasn’t yet started to draw an income, their Secure Income Base will still grow by 4.25%.
The Secure Income Option also offers a guaranteed minimum death benefit, so your clients can have the added peace of mind that should they die their beneficiaries will also benefit from the safety net of our guarantees.
