50-0 LIFE ANNUITY

• Age

  You can take out the 50-0 Life Annuity from 65 to 85 years old.

• Amount

  The minimum premium amount for the 50-0 Life Annuity is 30,000 euros, which is paid as a single lump sum, with no additional contributions.

• Interest

  There is a technical interest rate, which is fixed in advance and is insured. It does not vary based on market performance. Please check with our managers.

• Frequency

  You can choose from the following annuity payment options: Monthly, quarterly, half-yearly or annually. The start date will depend on the frequency chosen. For example, for monthly payments, you will receive the first income payment in the month after it is set up.

• Coverage

  The 50-0 Capital Annuity provides the following coverage:

  • Over your entire life: It provides you with a fixed and constant income throughout your life or until it is redeemed.
  • Should you die: Depending on the coverage chosen, beneficiaries will receive the capital set out in the table below:
  Years since the life annuity was set up

  50 Capital
  % of insured capital paid to the beneficiary

  0 Capital
  % of insured capital paid to the beneficiary

  1st;

  95%

  95%

  2nd

  90%

  90%

  3rd

  85%

  85%

  4th

  80%

  80%

  5th;

  75%

  75%

  6th

  70%

  70%

  7th

  65%

  65%

  8th

  60%

  60%

  9th

  55%

  55%

  10th

  50%

  50%

  11th

  50%

  45%

  12th

  50%

  40%

  13th

  50%

  35%

  14th

  50%

  30%

  15th

  50%

  25%

  16th

  50%

  20%

  17th

  50%

  15%

  18th

  50%

  10%

  19th

  50%

  5%

  20th and subsequent

  50%

  0%

• Liquidity

  Even though this product is intended to last your whole life, you can request to withdraw the premium starting from the first year after it is taken out. Should you do this, you will always withdraw all of the premium.

  If you cancel the product, the amount that you redeem may be less than the amount that you initially contributed, and you will have to repay all of the income that would have been tax-exempt to the Spanish Tax Agency.

• Beneficiaries

  As this is a life-savings insurance product, you can specify the beneficiaries. This will help you to plan and manage how your financial assets will be inherited.

• Taxes

  Payments received are treated as capital gains and are subject to withholdings at the current rate in the autonomous community in question.

  The percentage tax paid as personal income tax on annuities depends on the age of the investor or insured party when the policy is taken out:

  AGE WHEN THE ANNUITY IS SET UP

  % OF INCOME EXEMPT FROM TAXATION

  % OF INCOME TREATED AS CAPITAL GAINS

  Over 70 years old

  92%

  8%

  Between 66 and 69 years old

  80%

  20%

  Between 60 and 65 years old

  76%

  24%

  Between 50 and 59 years old

  72%

  28%

  Between 40 and 49 years old

  65%

  35%

  Under 40 years old

  60%

  40%

  Should the insured party die, the payments received by the beneficiaries will be subject to the Inheritance and Donations Tax.

In the case of collection in the form of an immediate annuity, the amounts received will be considered as capital gains, in a percentage that depends on the age of the beneficiary when they contracted the policy. The percentages are:

Redemptions: in insurance redemptions, the difference between the amount received as the redemption and the single premium paid plus the part of the income so far received that was exempt from taxation due to the application of the percentages shown in the previous table is regarded as a capital gain. These capital gains are subject to withholdings at the current rate in the respective autonomous community.

Death of the insured: The payments received by a person other than the policy holder will be subject to Inheritance and Donations Tax.
Depending on the degree of kinship (spouse, ascendant, descendant), these payments may qualify for certain reductions (€9,195 per beneficiary), which will depend on the autonomous community in question.

With life annuities, you cannot make additional contributions to the initial premium, but you can take out another life annuity.

No, you cannot change the frequency of the payments once the life annuity has been set up.

You can take out an annuity from €30,000, in either of the two forms.

In order to be eligible for personal income tax exemptions on capital gains arising from transferring assets which are subsequently reinvested in life annuities, you must fulfil the following requirements:

• The policyholder must be 65 years old or more.
• The life annuity must be set up within a maximum period of six months from the date that the asset is transferred.
• The life annuity must start to be received within a year of it being set up and be paid out at least annually, and the annual pay-out amount cannot fall more than 5% compared to the previous year.
• The taxable person must inform the insurance company that the life annuity taken out is used for reinvesting the amount arising from transferring assets.
• The maximum total amount that can be reinvested is 240,000 euros. The maximum that a taxpayer can pay throughout their life is €240,000. If the reinvested amount is less than the total obtained, the exempt capital gain will be calculated proportionally to the reinvested amount.
• When the reinvestment is not made in the same year as the sale, the taxable person must declare their intention to reinvest this amount in the tax return for the year when this equity increase occurs.

The payments received are treated as capital gains. Capital gains are subject to a 19% withholding that is included in the savings base and subject to a proportional rate, ranging from 19% to 26%. However, annuities have a distinctive tax advantage: The capital gains are included in the savings base, but only at a percentage of the annual income received. This rate is based on the age of the insured person when they take out the insurance. For example, if it is taken out at 70 years of age, the percentage of the income that is taxed is only 1.52% instead of 19%, provided that the total returns generated do not reach 6,000 euros.

In an ideal world, the policyholder would not have to redeem the product, since it is meant to be a lifelong product. It can be redeemed from the first year, but this may mean that the amount that you redeem may be less than the amount that you initially contributed, and that you will have to repay all of the income that would have been tax-exempt to the Spanish Tax Agency.

If the annuity is redeemed, the policyholder will receive the lowest of the following amounts:

• 100% of the mathematical provision when the annuity is redeemed.
• The death capital when the annuity is redeemed.
• The realisable market value of the assets under the policy when the annuity is redeemed*.

(*) The insurance company will invest the premium in fixed-income products, mainly debt issued by governments and other public bodies in the eurozone, as well as private fixed-income assets from issuers in the eurozone. Should the annuity be redeemed, there must be a divestment, transferring the amount of this to the customer if it is less than the initial value.

As this is a life-savings insurance product, you can specify the beneficiaries.