What is an annuity and how does it work?

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It guarantees great financial security, a significant promise in the context of an aging population. The life annuity is generally used to supplement the benefits of state and occupational pensions (1st and 2nd pillars) after retirement, thus allowing you to maintain your usual standard of living. The life annuity can be financed by a single premium or by periodic premiums. Life annuity insurance allows you to receive a regular income throughout your life. You receive it even if you have already largely exhausted the capital initially invested.


If desired, the life annuity can be concluded “on two heads”, in favor of the person of your choice. In this way, you give your loved one new financial security. As soon as one of the two insured persons dies, the annuity is transferred to the other, and this is also for life. You can also determine in your contract whether this pension deferral is total or partial.


Temporary annuities return financial wealth in the form of regular payments for a fixed period. They meet the most varied needs to carry out private or professional life projects, for you or your loved ones, at any stage of life (studies, travel, self-employment, etc.).


Certain annuities also return a financial heritage in the form of regular payments for a fixed period, but unlike temporary annuities, they do not depend on the life of the insured.


The payment of the annuity takes place immediately after the payment of the premium. The immediate annuity must be financed by a single premium.


In the case of deferred annuities, the funding and the payment of the annuity are separated in time. The deferred period is the period between the start of the contract and the first payment of the annuity. During this period, the financial wealth grows steadily.

The deferred annuity can be financed by a single premium, periodic premiums, or by a combination of the two.


As a non-profit public institution with a mutualist vocation, Rentes Genevoises has no shareholders to remunerate. Once the reserves are constituted, the profit is redistributed to the policyholders in the form of participation in the surplus. Depending on the type of pension policy, this redistribution can be broken down into three options:

The savings bonus: the shares of surpluses are accumulated on your savings capital during the savings phase.

Surplus supplement: surplus shares are paid in addition to your contractual pension. The shares are redefined each year.

Revaluation: the shares of surpluses are paid in the form of a revaluation of the pension according to the Geneva Consumer Price Index and the reserves constituted for this purpose. The annuity thus revalued constitutes the new guaranteed annuity.


The insured is the beneficiary of a life annuity. In the event of death, no capital is returned. In return, he gets a higher pension.


If the return of the capital is included in the contract, any balance of the insured’s capital, once all the annuities already paid have been deducted, is returned on his death to the beneficiary designated in the contract.

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