We decided that many clients would be reassured if they knew there was a way to finally get their money back. This is quite possible if an investment plan is linked directly to the Vacation Ownership purchase and properly managed over a fixed term. A vacation linked deferred annuity allows Equity Annuity Trust to invest your money and provide you with a guaranteed lump sum on maturity.
At Equity Annuity Trust, we see the concept of a deferred annuity as the future for the industry, supporting vacation costs by the management of a structured, linked, long term investment fund. The idea is not new. For decades, a high proportion of European property purchases have been based on banking loans which are linked to stock market investments. These investments provide final funds sufficient to repay the initial loan in full, often with substantial profits. An average membership term of 25 years allows excellent potential for long-term growth, and thus the concept was born of a deferred annuity linked to Vacation Ownership.
We invest flexibly over the term, and on maturity, our clients have a period of 365 days in which to claim the redemption of their asset (see Terms and Conditions). Payment is limited to the guaranteed amount shown on the deferred annuity certificate, irrespective of the progress of our investments. This provides a totally risk-free return for our clients.
The fixed sum payout we offer means, in effect, that any investment risk is being absorbed by us and, in accordance with the terms and conditions, the projected payout is guaranteed.
Compared to the cost of Vacation Ownership, the 10% additional cost to invest in a Equity Annuity Trust's deferred annuity is a relatively small outlay to secure the peace of mind that comes from knowing the entire membership cost will be reimbursed in full.