VARIABLE ANNUITY  

Date: __________

Place: _____________

Now hereby it is agreed as follows:-

1. The annuity is purchased by Mr./Ms. ________ of ________(add), from _____(name of the Co./firm) _____(add), of Rs. _____ for the period of ___ years.
2. The annuity will commence on the day ___ of ___month ____ year.
3. The annuity is variable in nature.
4. The premium is not fixed it may vary as the wishes of the purchaser, but Rs. _____is fixed minimum amount to paid as the premium by the purchaser on _____ (date of the premium to be paid by the purchaser every month).
5. The interest paid on annuity by the vendor will be ___ per cent per annum, on the maturity of the annuity the annuitant/purchaser.
6. At the end of the maturity, the purchaser is eligible to renew if the purchaser wishes so.
7. The nominee shall be made,         Name:                                                                                                                                                                                                                                                                                                                                               Address:                                                                                                                                                                                                                                                                                                                                         Age:                                                                                                                                                                                                                                                                                                                                                   Signature:            
8. The identification proof of the nominee shall be submitted at the branch office and self-attested.
9. The annuity shall be for ____ years.
10. After the completion of ___(no. of years) the purchaser can stop the payment of premium.
11. If the purchaser stops the premium before/during the period the penalty shall be beard by the purchaser himself.
12. If the purchaser does pay off refuses to pay the premium the purchaser shall not be eligible for the payment after maturity.
13. If the purchaser stops the payment of premium and wants to settle the annuity he can but he will not be eligible for the interest earned on the annuity.
14. If the purchaser wants to settle he shall present before the date of the payment of premium to avoid the penalties else the penalty shall be paid by the purchaser.
15. The agreement is legally binding between the purchaser and the vendor.
16. The vendor is liable to pay the full amount of the annuity at the maturity with interest to the purchaser.
17. The annuity is exempted from income tax under section 10(10A) and 80CCC of the Income Tax Act 1961.
18. 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.
19. 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.
20. The vendor will deliver an abstract of the title within ______ days thereof.
21. 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.
22. 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.
23. 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.
24. 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.
25. 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.
26. 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.
27. 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