Must confess I didnt really understand this question.
ii) Can i ask why i am not correct in thinking that only a cash payout is a suitable approach?
If i increase the "benefits" using the addition to benefits or revalorisation approach I increase all of my annuity payouts (today and in the future). Hence i cant do the very thing that this product does -
"Annuity benefits can reduce from one year to the next but cannot be less than the initial annuity".
e.g. I cant reduce the annuity payouts back to their initial amount if future surplus is negative using these approaches.
Any approach to the addition to benefits wont allow me to do this, no? Only a payout via cash allows me to achieve this goal as it dosent increase the benefits and thus the benefits/ annuity payout can be maintained at their initial amount (if the suplus is negative) and if the surplus is positive a cash payout can be made.
ii) Can i ask why i am not correct in thinking that only a cash payout is a suitable approach?
If i increase the "benefits" using the addition to benefits or revalorisation approach I increase all of my annuity payouts (today and in the future). Hence i cant do the very thing that this product does -
"Annuity benefits can reduce from one year to the next but cannot be less than the initial annuity".
e.g. I cant reduce the annuity payouts back to their initial amount if future surplus is negative using these approaches.
Any approach to the addition to benefits wont allow me to do this, no? Only a payout via cash allows me to achieve this goal as it dosent increase the benefits and thus the benefits/ annuity payout can be maintained at their initial amount (if the suplus is negative) and if the surplus is positive a cash payout can be made.