A Deferred Annuity With Flexible, Ongoing Payment Options
The Flexible Premium Deferred Annuity is a flexible-premium, deferred annuity that accepts ongoing deposits of as little as $50 per month.
One-Year Rate Guarantee Followed By Competitive Renewal Rates
There is a one-year interest rate guarantee period on each deposit, which secures the crediting rate for that duration. At the end of the guarantee period, your client benefits from competitive renewal rates based on the current interest-rate environment and current market conditions.
Every contract includes a principal guarantee, which ensures that your client will never receive less than total premium payments, less any previous withdrawals.
Nine-Year Surrender Period With Flexible Withdrawal Options
There is a nine-year surrender-charge period and each contract offers a variety of ways for your client to access funds before the end of the surrender-charge period without paying a surrender charge. In addition, there is no window at the end of the surrender-charge period, during which time owners are generally required to make a decision prior to a restart of surrender charges.
The Flexible Premium Deferred Annuity is an ideal savings vehicle for those seeking the flexibility of ongoing premium deposits and the benefits of tax-deferred growth.
This annuity is also an excellent way to enhance your client’s retirement-savings plan and can be used to fund 403(b) TSAs, IRAs and SEPs.
- Return of Premium Guaranteed
- 1-Year Rate Guarantee on Each Deposit
- 9-Year Surrender-Charge Period (9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%)
- $600 Annually to $1,000,000 initial premium (higher amounts may be permitted with prior home-office approval)
- Ongoing Premium Accepted
- 45-Day Rate Lock
- Issue to Age 90
- No Automatic Surrender Reset
- Surrender-Charge-Free Withdrawal Options
- 10% Annual Withdrawals (after the first contract year)
- Payments of Interest Earnings (beginning immediately)
- Early-Retirement Feature
- Nursing Home Waiver
- Terminal Condition Waiver
- Death Benefit
- Substantially Equal Periodic Payments
- IRS Required Minimum Distributions
- No Market Value Adjustment
100% Principal Guarantee
Regardless of economic fluctuations, your client will never receive less than total premium payments, less any previous withdrawals or outstanding loan balances. This is a guarantee that many other investments cannot provide.
45-Day Rate Lock
A rate lock allows 45 days from the time a request for a rollover, transfer or exchange is received in the home office. If funds are received within the 45-day window, your client will receive either the held rate or the current rate, whichever is greater.
Each additional deposit can be no less than $50 and the maximum deposit made in any contract year must not be greater than the prior contract year's total premium amount, without prior home office approval. Additional premiums will be credited with the rate in effect at the time they are received.
Surrender charges are waived if your client holds the annuity contract for five years or more and attains the age of 59½, an ideal feature for those clients who wish to retire early.
No Surrender Reset
Your client will be spared the hassle of the typical 30- or 60-day window at the end of the surrender-charge period.
- Flexible Premium Deferred Annuity Specimen Contract (PDF; 1.5 MB)