Guarantee options | AEGON

By: Aegon  05/12/2011
Keywords: Investment Returns, Income Option

5% guaranteed income for 20 years

Although your fund value can go up as well as down, we guarantee that you’ll receive 5% of your original investment for 20 years — whatever the market conditions. Even if your fund value falls to zero, you’ll still get 5% of your original investment.

With the guaranteed income option, the fund value can fall as well as rise and isn’t guaranteed. If you decide to cash in the plan before the end of the guaranteed income period or don’t select the guaranteed death benefit option along with the guaranteed income option and the last life assured dies before the end of the guaranteed income period, what we pay out isn’t guaranteed and you may not get back the amount you originally invested.

Take less to last for longer

You don’t have to take 5%, but you can’t take more than this. Taking less income means your guaranteed income will last for longer. If you chose to take 4% of your investment, for example, you’d receive a guaranteed income for 25 years. Whatever you choose to do, you’ll get a guaranteed income until we repay you an income equal to your original investment.

Guaranteed benefit

Your guaranteed benefit means that, once we’ve paid you an income equal to 100% of your original investment, your fund value will be at least equal to the difference between your original investment and the highest recorded fund value (explained below). Your guarantee(s) will be reduced proportionately for any additional withdrawals taken.

Each year on the bond anniversary, we’ll look at the fund value on each month over the previous 12 months — we call these points ‘monthiversaries’. If any of these values are higher than the current highest recorded fund value, or original investment in the first year, we’ll make this the new highest recorded fund value. We’ll always use the highest recorded fund value when calculating the guaranteed benefit.

The only circumstance in which the guarantees wouldn’t apply is if AEGON Ireland plc failed. In this event, the benefits from your bond may be affected.

Investment returns aren't guaranteed and although the income is guaranteed with AEGON Secure Income, the fund value isn't - so it could fall as well as rise.

Keywords: Income Option, Investment Returns,

Other products and services from Aegon

05/12/2011

Common questions | AEGON

Investment returns aren't guaranteed and although the income is guaranteed with AEGON Secure Income, the fund value isn't - so it could fall as well as rise. The only circumstance in which the guarantees wouldn’t apply is if AEGON Ireland plc failed. In this unlikely event, the benefits from your bond may be affected. Additional payments can’t be made.


05/12/2011

Products | AEGON International Investments

The Flexible Investment Plan is a flexible offshore investment plan that lets investors make both regular and single contributions at any time. Whether you're looking to invest a lump sum or regularly contribute to a bond, we have a wealth management product to suit. The Wealth Management Portfolio is an offshore bond that you can invest a lump sum or sums of money in.


05/12/2011

AEGON Secure Income | Products

AEGON Secure Income guarantees your income for a minimum of 20 years, as well as providing an optional guaranteed death benefit and a guaranteed benefit potentially payable at the end of the guaranteed income period. We’ll review your fund value each month, and lock in the highest monthly fund value on the bond anniversary if it’s higher than the previous locked-in value.


05/12/2011

Investment Choice | AEGON

There are four Core portfolios, which are built using a mix of the UK Index Tracker fund managed by BlackRock (for the equity content) and the UK Fixed Interest fund managed by AEGON Asset Management. Investment returns aren't guaranteed and although the income is guaranteed with AEGON Secure Income, the fund value isn't - so it could fall as well as rise.


05/12/2011

Charges | AEGON Secure

Whether we apply a cash-in charge or not depends on the charging structure you and your financial adviser selected when you took the plan out. It also shows our guarantee option fee where only the guaranteed income option has been selected. We give you 12 free switches a year.


05/12/2011

AEGON Secure Capital

Investment returns aren’t guaranteed and although the guaranteed capital value is guaranteed at the end of the capital guarantee term selected with AEGON Secure Capital, the fund value isn’t – so it could fall as well as rise. A guarantee to provide a fund value of at least 100% of your originalinvestment at the end of the capital guarantee term selected, no matter what happens to the markets.