What is an Annuity
An annuity is an investment product issued by a life insurer. An annuity is purchased by a lump sum, in return for regular income.
Reasons to value an Annuity
There are several reasons to value an annuity:
- Divorces Proceeding: the value of an annuity may be deemed to be property for distribution under the Family Law Act 1975 s79, or a resource relevant to the distribution of property under Family Law Act 1975 s79(5).
- Financial reporting requires asset values per the principles in Australian Accounting Standard AASB 13 Fair Value Measurement.
- Upon request from Services Australia
The annuity valuation provided by Actuarial Support is suitable for all these purposes. We value all annuities features, including the Challenger Annuity (Liquid Lifetime) product.
Challenging an AGA Valuation
Services Australia (formerly CentreLink) requires all assets to be valued as net market values. Services Australia can source a valuation of an annuity from the Australian Government Actuary (AGA).
The valuation provided by our expert can be used to challenge this AGA valuation.
Request an Annuity Valuation
Additional Information Required:
- 1. (Optional) Copy of the policy schedule creating the annuity. If the policy schedule is not provided, then we will rely solely on the responses in the form.
- 2. (Optional) Assessment(s) of the health of life annuitant(s) if not in normal health for their age(s).
Why Choose Us?
Quick Delivery
Free Amendments
Choice of Input Formats
Expert Witness Standard Reports
Common Features of Annuities
Fixed Term Annuity | Annuity that pays regular income for a fixed number of years. Capital (lump sum invested) can be returned at the end of the term or can be foregone in return for higher annuity payments. |
Lifetime Annuity | Annuity that pays for the life of the policyholder(s). It can include reversionary features, meaning that the payments vary based on whether two or more policyholders are alive. Eg. The annuity payments reduce by 50% after the first death of a policyholder and cease after the death of the second policyholder. |
Guarantee Period | Minimum number of years of payments on a lifetime annuity. Ensures a minimum number of payments are made in the event of early death of the policyholder(s). |
Indexation | Increases to annuity payments that normally occur on the policy anniversary. Type of annuity payment indexation include: Indexed at the CPI rate. Indexed at a fixed rate. Eg Increases of 2% pa. Indexed with changes to the RBA cash rate. Indexed with reference to another market index. |
Return of Capital | For a fixed annuity, return of the initial lump sum at the end of the term of the annuity. |
Withdrawal / Death Benefits | Formulaic rules for the return of all or part of the lump sum in the event of death of a policyholder or following a request for withdrawal. The Challenger Annuity (Liquid Lifetime) has both withdrawal and death benefits. |
Actuarial Support values annuities with all of the above features, including the Challenger Annuity (Liquid Lifetime) product.