Aegon Products and Services
General Account
With general account life insurance products, AEGON carries the investment risk, earns a spread (difference between investment performance and crediting rates to customers) and realizes mortality results.
Traditional life
comprises permanent and term life insurance
Universal life insurance
a flexible or single premium, adjustable benefit contract that allows the customer to pay premiums at any time, in virtually any amount, subject to a minimum and a maximum.
Term life insurance
covers the insured for a specific period of time. The policy pays death benefits only if the insured dies during the term. This category also includes life insurance sold as part of defined benefit pension plans, endowment policies and post-retirement annuity products. Bank- or company-owned life insurance (BOLI/COLI) funds the costs of employee benefits, usually with key employees of the company as the insured persons.
Fixed annuities
Annuities allow the client to save for the future on a taxdeferred basis and allow payout options that meet the client's need for income upon maturity. This can be in the form of a lump sum, income for life or income for a period of time.
GICs and funding agreements
GICs are contracts issued to tax qualified institutional investors, guaranteeing a rate of return on assets for a fixed period and payment of principal and accumulated interest at the end of the period (usually between three and five years). Funding agreements are issued to non-tax qualified clients. These are usually perpetual with no stated final maturity and liquidity option. The contract is terminated at the notification of the client; notice provisions range from six months to thirteen months in advance of the payout date.
Account of Policyholders
On account of policyholder products the policyholders carry the investment risk. AEGON earns management and administration fees and mortality results
Life for account of policyholders
Represents several forms of life insurance and pension products whereby death benefits and cash values vary with the performance of a portfolio of investments. Premiums can be allocated among a variety of investments that offer different degrees of risk and reward including stocks, bonds, combinations of both, or investment products that guarantee interest and principal.
Includes variable universal life (North-America), tontine plans (the Netherlands) and unit-linked life insurance (Europe).
Variable universal life products are similar to universal life products, but have the added feature of investment options and investment assets are maintained in a separate account.
Variable annuities
Annuities allow the client to save for the future on a taxdeferred basis and allow payout options that meet the client's need for income upon maturity. This can be in the form of a lump sum, income for life or income for a period of time.
Fee business
This includes products that generate fee income for AEGON by providing management, administrative or risk services related to off balance sheet assets (i.e. equity or bond funds, third-party managed assets and collective investment trusts). Much of this income is generated by synthetic GICs which differ from traditional GICs by being structured as an offbalance fee-based product with the customer retaining ownership and control of the asset. The trust GIC permits the purchaser to own and manage the investment asset related to these contracts while receiving a guarantee from the company to provide cash advances in the event that qualified plan benefit requests exceed plan cash flow. The cash flow advances allow the customer to avoid liquidation of assets to pay benefits.
Banking
Includes savings accounts and investment contracts (i.e. security lease products). Both products generate investment spread income for AEGON.
Accident and health insurance
Limited forms of health insurance, including disability insurance (Netherlands) and accidental death and dismemberment (USA), are offered. AEGON offers no major medical coverage.
Supplemental health insurance
normally pays a specified amount for a covered occurrence, or a deductible or coinsurance amount not paid by primary coverage.
Long-term care insurance
protects the insured's income and retirement savings from the costs of long-term nursing home or home health care.
General insurance
Limited forms of general insurance offered in selected markets, i.e. car insurance, liability insurance, household insurance and fire protection.