AEGON secure income option

With AEGON secure income option we guarantee that you’ll receive 5% of your original investment for 20 years, tax-deferred. Whatever the market conditions, even if you run out of money, you’ll still get 5% of your original investment.

It’s completely up to you when to take your income. You can choose to stop and start the income payments whenever you like. Our promise remains the same — you’ll get a regular income until we repay you an income equal to your original investment, whatever happens in the markets, unless you choose to take extra withdrawals from your bond.

If you choose to take less than 5% income, your regular income will last for longer. For example, if you choose to take 4% of your investment you'd receive an income for 25 years. No matter what, you'll receive a regular income until we repay an income equal to the original investment.

It's important to know that any guarantee is based on the ability of the issuing insurance company - in this case Scottish Equitable plc - to pay for it. If, for example, that company no longer existed, then the guarantees would be affected.

We use the term 'income' to describe a regular payment from the bond, and it isn't the dividend or coupon payments received from the underlying investment.

This bond not only protects your income from market downturns — it also helps to position it to catch the upswings and potentially locks in this growth, even if the fund value subsequently drops. Each year on the bond anniversary, if your bond grows in value to more than your original investment, we'll lock in this growth.  We call this your 'guaranteed benefit'.

We'll repeat this process every bond anniversary. If the growth is higher than your current guaranteed benefit we'll lock in this growth to become your new guaranteed benefit amount.

Once we've paid you an income equal to your original investment amount, we'll guarantee that your bond value is at least equal to the 'guaranteed benefit amount'.

It's important to bear in mind that the guaranteed benefit isn't payable until your regular income has been paid.  If the bond is cashed in before the end of your regular income period you won't receive the guaranteed benefit amount.

Please remember, this investment growth can't be guaranteed and the value of the bond may go down as well as up.

It's important to know that any guarantee is based on the ability of the issuing insurance company - in this case Scottish Equitable plc - to pay for it. If, for example, that company no longer existed, then the guarantees would be affected.

We use the term 'income' to describe a regular payment from the bond, and it isn't the dividend or coupon payments received from the underlying investment.

When the last person covered by your bond passes away, we guarantee to pay out, at the very least, an amount equivalent to your original investment, less any regular income you’ve already received. We could, however, pay out more than that. We’ll pay the highest of:

• 100.1% of the cash-in value of your bond
• your original investment less any withdrawals taken, or
• the highest recorded fund value (recorded on any policy anniversary), less any withdrawals taken

This applies when you haven't received an income equal to the amount you originally invested. 

Please note, once you've received an income equal to your original investment, the money-back guarantee on death no longer applies.  In this instance, if a cash-in value exists, we'll  pay out 100.1% of the cash-in value of your bond.  Please be aware there may be no cash-in value.

It's important to know that any guarantee is based on the ability of the issuing insurance company - in this case Scottish Equitable plc - to pay for it. If, for example, that company no longer existed, then the guarantees would be affected.