St James’ private placement variable annuities and variable life insurance policies allow flexibility in the underlying assets in their policies. We also offer a fixed annuity that is less flexible, but offers a guaranteed rate of return, which may fluctuate when and if its term is renewed. These underlying investments are typically government or triple ‘A’ rated securities, but can be influenced by the annuitant.
The financial performance of our variable annuity is determined by its underlying investments and can be purchased with a lump sum or periodic payments. Annuitants may be able to benefit from tax-deferred potential growth.
Both our fixed and variable annuities have a number of attractive features and can be particularly advantageous to U.S. residents because:
· They offer a wide assortment of underlying policy asset investment options;
· Owners have the ability to protect the policy’s assets from creditors without the need to use a reportable offshore trust;
· They have the potential to generate significant tax-deferred returns;
· Invested funds are overseen by a major international bank;
· The U.S. Internal Revenue Service does not include annuities in its definition of a tax shelter.
Our annuities, both variable and fixed, may be an opportune solution for individuals and estates requiring wealth preservation strategies.
Our Variable Universal Life Insurance
Variable life insurance (VUL) works essentially the same way as variable annuities – you choose the investment options and performance is based on those choices However, VUL insurance differs from variable annuities in two ways.
First, the product is life insurance and thus a tax-free death benefit may be available. Second, the product is universal, meaning you may change the size and frequency of premium payments. Typically, you can’t do this with non-universal life insurance contracts.
Otherwise, VUL generally offers the same advantages and tax-deferral benefits as variable annuities.
To read perspectives from experts on annuities and variable life insurance, please click here.
