DEFERRED ANNUITY

Date:

Now hereby it is agreed as follows:

1. The annuity is purchased by Mr. /Ms. ________ of ________ (add), from _____(name of the Co./firm/vendor) _____(add), of Rs. _____ for the period of ___ years.
2. The annuity will commence on the day ___ of ___month ____ year.
3. The purchaser has to state what sort of risk he wants to take for his annuity for the purpose that the money shall be further invested only as per the discretion of the purchaser.
4. The annuity is transferable, continual, renewable as per the discretion of the purchaser as he deems fit.
5. Risk management shall be decided by the purchaser on his discretion only the money shall be further invested, if the purchaser chooses to low risk investment then in such a situation the return of the investment shall be less compare to the high risk/other investments.
6. The purchaser can purchase the annuity with lump sum amount and with the premium biases both all as per the discretion of the purchaser.
7. The purchaser either can purchase for himself for his retirement or can save for the child’s education or health it is transferable as well as compoundable.
8. The investment made by the purchaser of date ________ to the vendor is exempted until its redemption/due date under section 10(10A) and section 80CCC of the Income Tax Act 1961 and such investment shall be listed in the deductions.
9. The purchaser can withdraw money from annuity but to 10 per cent annually if the purchaser withdraws more than 10 per cent the penalty shall be livid by him, the penalty may vary from 5-15 per cent.
10. The purchaser has full autonomy over the annuity deed.
11. The vendor will provide statutory declaration made by the competent decadents verifying the identity and age of the vendor, the identity of the present trustees of the settlement, the death of [previous trustees] and [any other matter of pedigree affecting the title or the trusteeship], and such statutory declaration will exhibit certificates in the long form of the vendor birth and of all other material births marriages or deaths. The vendor will make the said statutory declaration in support of his own expense will himself make a statutory declaration in support of his title to the said life interest in such form as the purchaser shall reasonably require. The Purchaser shall accept such statutory declaration as -aforesaid as sufficient evidence of the matters therein stated.
12. The vendor hereby authorizes the purchaser to make such inquiries as the purchaser thinks the fit of the trustees of the said settlement regarding the constitution of the trust fund, any dealings there with the answer of one only of the trustees to any such inquiries.
13. The vendor will deliver an abstract of the title within ______ days thereof.
14. Any requisitions on the title shall be the abstract and subject solicitors within _____ days after the delivery of the abstract and subject thereto the title shall be deemed to be accepted.
15. If the purchaser shall take any objection or make any requisition which the vendor shall be unable or on reasonable grounds unwilling to remove or comply with and the purchaser shall not withdraw such objection or requisition within ten days after being required or his solicitors (notwithstanding any intermediate negotiation or litigation) rescind this agreement and the purchaser shall thereupon return all abstract and papers in his possession belonging to the vendor and make no claim for the costs or otherwise.
16. Upon payment of the purchase money at the time and place aforesaid the vendor shall by a proper instrument grant the said annuity to the purchaser out of them and by way of a first charge on the said life interest of the vendor.
17. The said instrument shall contain provision to the effects set forth in the second schedule hereto and such other power and provision to the effect set forth in the second schedule hereto and such powers and provision as are usual in grants and such other powers and provision as are usual in grants of the like nature.
18. All expenses of and incidental to the preparation and execution by both parties and completion of the said instrument and the cost the trustees of answering any inquiries shall be paid by the purchaser.

 

Witness

1. _______________
2. _______________

 

Particulars of investment

(                                                 )

Signature of both parties