Annuity

Variable Annuities

What Is a Variable Annuity?

A Variable Annuity is a contract between the policy owner and an insurance company, to which the insurer agrees to make periodic payments to the policy owner, beginning either immediately or at some future date. A Variable Annuity contract can be purchased by making either a single purchase payment or a series of purchase payments.

A Variable Annuity reduces tax liability by allowing tax-deferred growth of assets through a wide range of investment options. Most importantly, a Variable Annuity allows you to select investments that are best suited to your investment goals. The value of the policy will then vary based on the actual performance of the investments as opposed to a predetermined rate.

Advantages of a Citadel Variable Annuity

Tax Benefits For as long as there have been income tax laws in the U.S., insurance products have enjoyed favorable treatment. Annuities enjoy tax-free accumulation throughout the life of the policy. It is important to know, however, that distributions from an annuity are taxed as ordinary income, and distributions at the time of the annuitant's are taxable to the beneficiary of the annuity.

Asset Protection Citadel annuities, written under Anguillan law, have an inherent level of asset protection because, in most cases, the policy cannot be attached by creditors. In addition, in some states, the assets of annuities cannot be included in bankruptcy judgments and cannot be seized by U.S. courts.

Confidentiality Many foreign jurisdictions, including Anguilla, require that insurance policies be held in strict confidence. Exceptions may apply with respect to disclosure of tax information, including provisions under tax treaties with the U.S.

Investment Options Unlike most domestic carriers, Citadel does not limit its investments to a group of company owned funds, but rather offers the policy owner the chance to invest in public and private stocks, public and private funds, real estate and intellectual properties, virtually anywhere in the world. This feature gives tremendous flexibility through a wide range of investment options.

Citadel also offers three unique investment strategies, making its policies so flexible they rival any U.S. Treasury Department and Internal Revenue Code compliant annuity offered by other companies around the world.

Preferred
Policy owners may select from several Preferred accounts with various maturities. The Preferred investment strategy allows the policy owner to select a low cost investment option where funds are secured by a diversified portfolio of U.S. Treasury notes and bonds, public and private stocks, corporate bonds and money market instruments.

Select
Through its mutual fund administrators, Citadel offers some of the finest international investment products available anywhere. Citadel provides a group of funds and fund managers with their own specific investment objective and investment policy.

Choice
Through the Choice option, policy owners may recommend any experienced money manager in the world provided that the manager meets Citadel's high standards. The insured may submit the name of the preferred money manager. Citadel will then conduct extensive due diligence. If warranted, Citadel will approve the money manager and make the manager available to Citadel policy owners.

As an additional option under the Choice selection, policy owners may make a portion of their premium payments with "in-kind" or non-cash assets including existing stock and bond portfolios, real property, intellectual properties as well as other non-liquid assets.

Citadel shall have no responsibility or liability for any losses to the Investment Account. Citadel Insurance Company, Ltd. shall deduct the cost of investment advisory or management fees from the Investment Account.

Segregated Accounts As an international insurance company under the laws of Anguilla, Citadel annuities all enjoy the benefit of segregated account legislation. This means, by law, the investment portion of an annuity is held separately from the assets of the company and the company’s other clients. Assets are not commingled and are therefore not at risk should a creditor attempt to attach the funds of another client or the insurance company.

Other Savings There are several ways that Citadel operates in a more cost effective manner than domestic carriers.  By choosing to not to do business in the U.S., Citadel is not subject to the high cost of corporate income tax or the regulatory burden imposed by each of the 50 states different insurance laws and regulations.  Citadel runs an efficient, cost effective operation that is dedicated to serving its clients.

U.S. Treasury Department and Internal Revenue Code Compliant Citadel provides unique insurance structures tailored to the individual client.  These structures are reviewed annually by outside U.S. legal counsel to ensure that all policies and structures adhere strictly to all applicable Internal Revenue Code sections, modifications in the Code, and Revenue Rulings. Citadel clients can rest easily knowing that they can enjoy the benefits of international planning while investing in U.S. compliant products.

Anti-Money Laundering Citadel strives to be a leader in complying with all "Anti-Money Laundering" laws, "Know Your Customer" requirements, PATRIOT Act rules, and Caribbean Financial Task Force initiatives.

Security In some U.S. states, annuities cannot be included in bankruptcy judgments and cannot be seized by U.S. courts.

Annuities can be used to provide security for the family and estate of the insured.

Annuity Payments

Citadel Insurance currently offers six flexible annuity payment options under the terms and conditions of the Flexible Premium Variable Annuity Policy.

Plan A – Income for a period of years certain

Income payments will be made monthly for a period of years not exceeding thirty.

Plan B – Life income with no minimum period

Life income payments will be made monthly so long as the annuitant shall survive, but will cease on the death of the annuitant.

Plan C – Life income with ten year minimum guarantee

Life income payments will be made monthly as long as the annuitant shall survive, but if the annuitant dies before 120 such monthly payments have been made, the company will continue to make payments to the annuitants heirs or estate until a total of 120 payments have been made.

Plan D – Life income with twenty year minimum guarantee

Life income payments will be made monthly as long as the annuitant shall survive, but if the annuitant dies before 240 monthly payments have been made, the Company will continue to make payments to the annuitant's heirs or estate until 240 payments have been made.

Plan E – Joint and Survivor annuity

Annuity payments will be made monthly as long as either one of the annuitants shall survive, but will cease on the death of the Survivor.

Plan F – Joint and two-thirds Survivor annuity

Annuity payments will be made monthly as long as both of the annuitants shall survive, and on the death of either of them, all subsequent annuity payments will be reduced to two-thirds of the previous amount and will be continued at this reduced amount during the lifetime of the Survivor.

The amount of each payment under Plans B, C, and D shall be based on the sex and age at the nearest birthday of the annuitant when the first payment becomes due. The amount of each payment under Plans E and F shall be based on the sex and ages of both annuitants when the first payment becomes due. Before any payment is made under Plans B, C, D, E, or F, Citadel must be provided with satisfactory proof of age of the annuitants.

Citadel Insurance Company, Ltd.
P.O. Box 1162, The Valley
Anguilla, British West Indies
Phone: (264) 497-0147
Fax: (264) 497-2059
clientserv@citadelins.com