• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Ch 19 pg 8

S

SABeauty

Member
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.
 
You must log in or register to reply here.
Back
Top