swissannuity.ch  
Schweiz- Suisse - Switzerland
SWISS ANNUITY PLANS

Deferred Variable Annuity Plan

The variable annuity does not guarantee fixed rate of return, but variable returns. You invest a lump sum up-front with a insurance company, you choose asset management, asset protection is provided under time and court-tested insurance laws of Liechtenstein. We are only offering variable annuity in Liechtenstein as variable annuity is not possible in Switzerland.

Quite contrary to the fixed annuities, are the variable annuities. The more risk you take on your capital, the higher returns are guaranteed. By putting an insurance wrapper to your strategy portfolio or investment, asset protection can be achieved for your money. These strategies within an insurance policy are also referred to as variable annuities. They are "variable" because returns are not guaranteed, but you have considerable freedom to choose the strategy for investing your money. Just like with investments in the equity and bond market, as you take on greater risk, you are rewarded by potentially higher returns.Unlike fixed annuities, you have the considerable freedom, to choose your strategy portfolio of your own choice.

We require a minimum investment of USD 1 million for the variable annuity plan. With fixed annuity plans, the minimum is USD 50'000.

Features

  • Privacy
  • Asset Protection
  • Easy Liquidity
  • Meets IRS Tax Deferral for U.S citizens
  • Global Diversification
  • Hegde against currency declines
  • Your choice of investment strategy, custodian and wealth manager.

 

We can send you proposal quote, necessary brochures and application forms by email or postal mail.

Should you have further questions please contact us

 

For U.S Investors

The information below may not be interpreted as legal or tax advice before making an investment decision. We do not provide legal, tax advice to our clients. Please consult your tax expert in your country for more information.

For US investors, the variable annuities are meets IRS code of tax deferral. Under Section 1035 of the Internal Revenue Code, a contract issued by a domestic or foreign insurance company can be exchanged on a tax-free basis for one issued by a foreign insurance company. Form 1035 is used for this purpose. If you choose to your cash values before 59 1/2 of age, IRS may charge you 10% penalty. During your phases of retirement, should your strategies are subjected to risks, you can jump from dynamic to fixed strategy to reduce risk. Should your chosen currency goes down in value, your portfolio has other currencies to compensate this downtrend.

  U.S Annuities Strategy Portfolio
Asset protection no yes
Privacy no yes
Full diversification no yes
Hedge against dollar decline* no yes
Tax-deferral yes yes
Flexibility yes yes
Choice of investments yes yes
Liquidity(* unless invested in foreign currencies) yes yes
     

US-Tax deferral for Variable Annuities

By putting an insurance wrapper to your strategy portfolio, US citizens can enjoy the tax-deferred status of variable annuities. Further, you have to take to following points into consideration while structuring your portfolio:

  • Qualification as a life insurance (insurance corridor)
  • No self-direction
  • Diversification rule
  • No 'debt instrument'

Debt Instruments

A variable annuity is does not “promise to pay a sum certain” and is not, therefore, a debt instrument. According to experts, a variable annuity under which the issuer guaranteed to return the owner’s investment, or guaranteed a certain investment return, might be a debt instrument subject to section 1275. But as long as the risk of loss lies with the owner, section 1275 does not apply and the annuity income is tax deferred.

In addition to the above criteria for determining whether a variable annuity is a debt instrument, two further conditions need to be met for tax deferral.

1. The Variable Annuity Must Not Be Self-Directed . The income from a variable annuity is tax free if the owner (or his or her adviser) is not managing the investments himself or herself (a so-called "self-directed" annuity). Owners are permitted to choose investment categories, but under the self-directed annuity rules they may not choose the actual investments. If they do, they are treated as the owners of the underlying assets and the income generated by those assets is taxable.

2. "Diversification Rule": The Variable Annuity Must Be Adequately Diversified . Finally, the inside buildup of variable annuities is tax free if the underlying portfolio is adequately diversified as defined in the U.S. tax code. An account meets the ,,diversification rule“ if

  1. No more than 55 percent of the value of the total assets of the account is represented by any one fund;
  2. No more than 70 percent of the value of the total assets of the account is represented by any two funds;
  3. No more than 80 percent of the value of the total assets of the account is represented by any three funds; and
  4. No more than 90 percent of the value of the total assets of the account is represented by any four funds.

To make certain that variable annuities comply with the diversification rule at all times, portfolio rebalancing is required on atleast a quarterly basis.

The tax-deferred status of variable annuities has consequences for early withdrawal just as do U.S. contracts. Variable annuities, however, offer a combination of asset protection, a choice of asset allocation strategies based on an investor‘s risk profile and other needs, and tax deferral for U.S. investors. This makes them ideal long-term investments that can harness the power of compound growth for a retirement portfolio.

US Excise Tax

1% excise tax applies Liechtenstein insurance products are not exempt from this. Swiss annuities are exempt from this.

1035 Tax Free Exchange

Under Section 1035 of the Internal Revenue Code, a contract issued by a domestic or foreign insurance company can be exchanged on a tax-free basis for one issued by a foreign insurance company. Form 1035 is used for this purpose. It should be possible to convert your existing annuity to swiss annuity.

Strategy Portfolio qualification for IRA Retirement plan

Strategy portfolios may be purchased by US taxsheltered corporate pension plans, 401k , Keogh (H.R. 10) plans and Individual Retirement Accounts (IRA). Special procedures are required which complies with IRA regulations and to make rollovers from your current plans. For more information, please contact us.

** Note: The information available here not constitute professional opinion and should not be be relied upon in making an investment decision. We ask our clients to seek professional advice from a tax expert in their home country, as we do not provide assistance in tax matters.

We can send you proposal quote, necessary brochures and application forms by email or postal mail.

Should you have further, questions please contact us


Asset Allocation and Portfolio

Please note that every strategy portfolio has to be managed individually and the asset allocation (and therefore risk, possible return, etc.) is to be discussed directly between the you and the bank/asset manager, since we do not provide these services.

 

DEFERRED VARIABLE ANNUITY PLAN
   
Insurance Company
  • Swiss Insurance company in Liechtenstein
  • Luxembourg Insurance company
  • Singapore Insurance company
Minimum Investment USD 1 million or more
Policy Holder 1 (individuals or certain entities)
Client Benefits For those who are in retirement needs
Duration Whole of Life
Annuitants / Insured Person 1 or 2 (individuals only)
Contribution Single Premium (transfer of assets possible)
Surrender Partial surrender and total surrender possible at any time, provided a minimum withdrawal amount of USD 50 000 and minimum remaining policy value of USD 150 000
Add on minimum USD 100'000
Add on limits no limit, anytime
Reference currency USD, EUR, CHF, SGD
Insurance privacy yes
Investment opportunities All bankable assets (no restrictions for US persons); diversification and OID(Original issue discount) rules to be observed, especially beneficial for holding non-US investment funds
Annuity Annuity payment with lump sum option.
Tax without Insurance US income, capital gains and PFIC (Passive foreign investment company) taxes
Tax with Insurance

Insurance tax - 1% excise tax (US stamp duty) for US citizens or residents

Tax during term - None

Tax of payment - 35% income tax if minimum conditions met (> age 59 ½ ). If early surrender < age 59 ½ penalty tax of 10% additional to income tax applies

Tax in case of death of owner - Income tax (individual tax rate of owner)

Wealth tax - None

Donation and Inheritance 45% gift and estate tax (after allowances)
Other costs and fees see quote
Pledge of Policy Policy can be used as collateral; tax consequences may apply
   

*Note: Above is for sample only. Actual policy conditions and rates may vary from one insurance company to other.

We can send you proposal quote, necessary brochures and application forms by email or postal mail.

Should you have further, questions please contact us

 

Our service is free with best advise and assistance on fixed or variable annuities, appointment of beneficiaries and maintenance of contract with premier rated Swiss insurance companies. We charge no upfront fee from our customers, as our commissions are paid by insurance companies in switzerland. We offer you the best advice and consultation for your investments in switzerland.

For more information please refer our Frequently Asked Questions(FAQ's) section. Should you have any questions of general category, please do not hesitate to Contact Us.