The new products, which are from Aegon Ireland and each carry a minimum investment of £15,000, are the Aegon Secure Capital, Aegon Secure Income and Aegon Secure Trustee Investment bonds.
The Aegon Secure Capital bond offers investors a guaranteed future capital value at a pre-selected term and an optional death benefit guarantee. Providing no additional withdrawals are made, the bond guarantees that the fund value will be a minimum of 100% of the original investment at the end of the selected capital guarantee term of between eight and 20 years.
The Aegon Secure Income product offers an income guarantee, an optional death benefit guarantee and a guarantee benefit payable at the end of the guaranteed income period. The income guarantee is equal to 5% of the original investment for 20 years, or less for longer until 100% of the original investment has been taken as income.
The Aegon Secure Trustee Investment combines the options of the other two new bonds to provide a choice of a guaranteed lifetime income, guaranteed income over 20 years, guaranteed capital at a pre-selected fixed term and optional guaranteed death benefits.
All of the products have escalation features, meaning the fund values are reviewed at regular intervals to lock in investment growth which then becomes the minimum base from which income and capital guarantees are calculated.
David Healy, managing director of Aegon Ireland, said guarantees were becoming an increasingly attractive option for people who were approaching retirement.
“These new products will add real value to advisers and customers who require the level of certainty that an income or capital guarantee can provide.”
