Business overview  Results of operations – the Netherlands 48 Term life insurance pays out death benefits should the insured  die during the term of the contract. Whole life insurance pays  out death benefits in the event of death, regardless of when  this occurs. Premiums and amounts insured are established  at inception of the contract and are guaranteed. The amount  insured may be adjusted at the request of the policyholder.  Term life insurance policies do not include profit-sharing  arrangements. Part of the whole life insurance portfolio has  profit-sharing features, which are based on external indices or  the return of related assets. Annuity insurance includes products in the accumulation phase  and products in the payout phase. Payout commences at a date  determined in the policy and usually continues until death of  the insured or the beneficiary. Premiums are paid at inception  of the policy or during the accumulation phase of the policy.  The contracts contain minimum guarantees of 3%, or 4% and  prior to 1999 of 4%. Interest rebates are given on both single  and regular premium annuity insurance, and may be based  on a portfolio of Dutch government bonds, although other  calculation benchmarks may also be applied. There are also  profit-sharing schemes set by reference to external indices that  are based on pre-defined portfolios of Dutch government bonds. These products have a minimum benefit guarantee, except for  premiums invested in equity funds. The initial guarantee period  is ten years. Tontine plans are unit-linked contracts with a specific bonus  structure. At the end of the year in which the insured dies,  the policy balance is distributed to the surviving policyholders  who belong to the same tontine series, rather than to the  policyholder’s estate. Should the policyholder die before the  policy matures, a death benefit is paid to the dependants.  Tontine policyholders may invest premiums in a number of Aegon  funds. Aegon the Netherlands manages but no longer sells  tontine plans. Since 2013, Aegon the Netherlands has offered annuity and  linear residential mortgage loans, either individually or in  combination. Previously the business also offered interest-only,  unit-linked and savings mortgage loans. Aegon the Netherlands provides full-service pension solutions  and administration-only services to company and industry  pension funds and large companies. The full-service pension  products for account of policyholders are separate account group  contracts with and without guarantees. The Pensions business provides a variety of full service pension  products to pension funds and companies.  Aegon the Netherland’s life and savings products are sold  through Aegon’s intermediary and direct channels. In the first quarter of 2013, Aegon the Netherlands launched  Kroodle, one of the world’s first insurance companies to  operate primarily through Facebook allowing customers in the  Netherlands to purchase insurance and manage their accounts  through their Facebook profile. Aegon the Netherlands launched online bank Knab in 2012. The  platform provides customers with insights into their financial  future and uses a fee-based model to empower informed  decision making by customers. A product of collaboration  with customers, experts and critics, Knab is designed to meet  contemporary customer needs. Banksparen is a saving product for which amounts are deposited  in a "locked" bank account exempt from capital gains tax. The  amount saved is available for specific purposes after a certain  time period. Investment contracts are investment products that offer index- linked returns and generate fee income from the performance of  the investments. Aegon the Netherlands offers flexible savings accounts with  cash withdrawal with limited restrictions, and deposit accounts  with a predetermined maturity. Term and whole life insurance Annuity insurance Variable unit-linked products Tontine plans Mortgage loans Products Pensions Sales and distribution Kroodle Knab Long-term deposits ( "Banksparen") Investment contracts Savings accounts Annual Report 2013