Hi. For q 19.11 they talk about surrendering the policy? Are they talking about it the premium paying stage and not the actual claim stage? I thought you couldn't surrender an annuity once in claim stage? Thanks
You can surrender an annuity; but Deferred's would in most cases give you some payout pre-vesting, whiles Immediate's gives you nothing, which I assume is what you are referring to. However, with this question, the trap is "Variable Annuity". "Variable annuity" is not synonymous to what the UK market calls an annuity contract. VAs are generally Unit-Linked contracts which could be a medium to saving for retirement income or an investment opportunity in general. A key feature with the VA's is the potentially valuable guarantees they provide. By their design, most are perfectly surrender-able, probably more exposed to selective withdrawals than most other forms on contracts due to the embedded guarantees, options and associated charges. Providers however adopt designs that would hopefully minimize adverse withdrawal experience. Regards.
