Foreign Variable Deferred Annuities

Variable annuities have been an effective long-term financial planning tool for U.S. investors for more than 40 years. Total assets invested in annuities in the United States are now estimated at over 5400 billion.

The variable annuity concept is simple - an investor places funds in a variable annuity contract with an insurance company. The funds are then placed under the direction of an Investment Manager and invested in securities, with the value of the annuity contract fluctuating with the value of the underlying investments. The variable annuity account is required by law to be segregated from the general assets of the insurance company, and while it is not a trust account, it is similar to a trust in that it is protected from the claims of creditors of the insurance company, Accordingly, even if the insurance company fails, the assets can only be used to satisfy the obligations to the variable annuity holders.