Investments

One of the most unique and desirable characteristics of Fidelity Insurance Company, Ltd. (Fidelity) life policies and annuities is the investment options available to policy owners.

Fidelity offers three unique investment strategies, making its policies so flexible that they rival U.S. Internal Revenue Code compliant policies offered by other companies around the world.

Preferred
Policy owners may select from several Preferred accounts with various maturities.  Preferred 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, Fidelity offers some of the finest international investment products available anywhere.  Fidelity 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 Fidelity's high standards.  The insured may submit the name of the preferred money manager.  Fidelity will then conduct extensive due diligence.  If warranted, Fidelity will approve the money manager and make the manager available to fidelity 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 as well as other non-liquid assets.

Annuities also enjoy the tremendous advantage of tax-free accumulation.  An annuity investment is appropriate for many clients who need tax-free accumulation but do not qualify for or want life insurance.  It is important to know, however, that distributions from an annuity are taxed as ordinary income and distributions made at the time of death of the annuitant are taxable to the beneficiary of the annuity.

Transfers Between Sub-Funds

Premiums may be allocated by the owner among any or all of the Sub-Funds; the policy owner may transfer amounts from one Sub-Fund to another. Fidelity may substitute new assets in any of the Sub-Funds in accordance with the investment objective of such Sub-Fund. All Sub-Funds are managed to meet Internal Revenue Code, Section 817(h) diversification requirements.

Fidelity may appoint an independent investment manager to direct the assets of any of the Sub-Funds pursuant to an agreement between Fidelity and the investment manager. Fidelity may, at any time, terminate such investment manager and engage a new manager.

U.S. Internal Revenue Code Section 817(h)

In order to preserve the preferred tax treatment off all life insurance and annuity polices it is important that the conditions of U.S. Internal Revenue Code Section 817(h) are met at all times. (Assuming the contract is not structured as a Modified Endowment Contract or MEC) There are a number of requirements to be met, including the requirement that the underlying investments in the segregated asset account be “adequately diversified”.

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

To find out more please contact us:

Email: clientserv@fidinsco.com

The Law Building
PO Box 14, The Valley
Anguilla, British West Indies