Question: Complexity and cost are two reasons I give when asked why I don't recommend unit-linked guarantees to my customers. Are we likely to see more cost effective products coming onto the market?
Answer: Colin Bell, European variable annuity product director, Aegon The issue of complexity comes up a lot with unit-linked guarantees, but in my view it's more perception than reality. I would contend that the customer proposition is quite simple. For a regular guarantee charge, these products allow you to invest in a mix of equities and bonds with greater security than before while retaining flexibility - whether that be through a capital guarantee on defined dates or through limited term or lifetime withdrawals at a certain rate. They can insure you against financial dangers - ...
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