FUTURE STABILITY INCOME

Terms and conditions Future Stability Income

• Age

  You can apply for a capital annuity from the age of 55 to 85 years old.

• Amount

  You can arrange a capital annuity from €30,000.

• Interest

  Know the interest rate in advance. Interest will be fixed, guaranteed and permanent.

• 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, in the case of monthly payments, the first income will be received the month following its arrangement.

• Guarantees

  There are two types of guarantee for two different cases.

  • During the life of the insured: this product assures you a fixed and constant income throughout your life or until it is redeemed.
  • In the event of death: if the insured party dies within the first two years after taking out the product, 100% of the investment or premium paid will be received. From the third year on, 100% of the investment/premium paid plus 1% (maximum 4,000) of the amount of the investment/premium paid.

• Liquidity

  Although this product is designed to accompany you throughout your life, you can request the redemption of the premium/investment from the first year after it is arranged. Such redemptions are always total.

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

• Beneficiaries

  As this is life-savings insurance, you can specify the beneficiaries. This will help you to plan and manage the inheritance of your financial assets.

• Taxation

  Payments received are treated as capital gains and are subject to withholdings at the current rate in the respective autonomous community. The percentage personal income tax on annuities depends on the age of the investor or insured party when the policy is arranged:

  Age when constituting the income

  % of income exempt from taxation

  % of income considered capital gains

  Over 70 years old

  92%

  8%

  Between 66 and 69 years

  80%

  20%

  Between 60 and 65 years

  76%

  24%

  Between 50 and 59 years

  72%

  28%

  Between 40 and 49 years

  65%

  35%

  Under 40 years old

  60%

  40%

  In the event of death, the payments received by the beneficiaries will be subject to Inheritance and Donations Tax.

Insured income taxation

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 is treated 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 and descendant), these payments may qualify for certain reductions (€9,195 per beneficiary), which will depend on the autonomous community in question.

Can I make additional contributions after contracting an annuity?

Life annuities do not allow you to make additional contributions to the initial premium, but you can open another life annuity.

Can I change the frequency of benefits once I am receiving them?

No, it is not possible to change the frequency of the benefits once the life annuity has been set up.

What is the minimum amount to contract an annuity?

You can subscribe to an annuity from €30,000, in either of their two forms.

How is income received taxed?

The benefits obtained have the nature of capital gains. Such gains are subject to a 19% withholding that is included in the savings base and subject to a progressive 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 at the time they contract 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.

Can I redeem the principal?

The ideal scenario is not to have to redeem the product, since its purpose is for life. It can be redeemed from the first year but this may mean recovering an amount less than that initially contributed, in addition to having to repay the Tax Agency all the income that would have been tax-exempt.

If redeemed, the receivable amount would be the lesser of:

• 100% of the mathematical provision at the time of redemption.
• The realisable market value of the assets subject to the policy at the time of redemption: the insurance company will invest the premium in fixed income products, mainly debt issued by governments and other public institutions in the Euro Zone, as well as private fixed-income assets from issuers in the Euro Zone. In the event of redemption, a divestment will be necessary, transferring the amount of this to the customer if it is less than the initial value.

Who can I assign as the beneficiary?

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