03.07 – Annuity Contract

An Annuity Contract is a contract under which the Financial Institution agrees to make payments for a period of time, determined in whole or in part by reference to the life expectancy of one or more individuals. For UK purposes, this covers all annuities as outlined in IPTM4000 Purchased Life Annuities.

The following are not considered to be an Annuity Contract for FATCA purposes.

  • Pension annuities – as per Section 3.11 these are exempt products
  • Immediate needs annuities see IPTM6205.
  • Periodic payment orders.

Reinsurance of Annuity Contracts between two Insurance Companies are excluded from this definition.