Life annuity insurance

FAQ

• What is annuity insurance?
  

• This is an individual life insurance policy whose goal is to guarantee a series of regular payments (annuity) for the rest of the insured person's life, including death benefits that will be a known amount at the time the policy is taken account and which will depend on each product.
  
  The product is structured based on two insurance operations: part of the contribution is allocated to a life insurance policy that guarantees the death benefits; the rest of the contribution is allocated to an annuity insurance policy through which the insurance company will pay the annuity.

• What is the gross income?
  

• This is the guaranteed amount received by the policyholder, without taking into account the corresponding taxes, which will be applied prior to payment into the account indicated by the policyholder.

• What are the death benefits?
  

• This is the amount, indicated when the policy is taken out, received by the selected beneficiaries at the time of death of the insured party, who do not necessarily have to be the insured party's legal heirs, and which is not part of the deceased's estate.

• Can I redeem my policy?
  

• Life Annuities are products designed with a lifetime vocation, this means that their duration is until the death of the Insured, but we understand that their circumstances may change so that total redemption can be requested from the beginning of the policy. In the event of redemption, all the tax advantages that would have been enjoyed will be lost. The amount you will receive in the event of redemption will be the lesser of the following values: the death capital, the mathematical provision and the market value of the linked investment, so it may be an amount lower than the initial premium contributed.

• What are the risks of these products?
  

• Risk of a reduction in value of the assets with which the surrender value is referenced. Risk that the insurance company may not be able to meet its payment obligations with the policyholders. Risk of possible negative impact of sustainability factors (known as ESG factors: environmental, social and good governance), which may cause a negative impact on the financial performance of the portfolios associated with the insurance product.

• What regular information will I receive about my product?
  

• You will receive information regarding payments received, the value of the mathematical reserve and the surrender value every six months.
  
  You will receive an annual statement of costs and expenses incurred during the calendar year of your policy.
  
  You can also find out the value of your policy at any time by visiting your Banco Santander branch or in the personal area of the Banco Santander app.