A Single Premium Deferred Annuity is a tax-deferred annuity is designed for clients looking toward retirement who are not in need of long-term care. The product receives a competitive rate of return and taxes are not due on any interest earned until withdrawals are made or annuitization begins.
PRODUCT FEATURES:
Rate of Return
1-Year MYGA – 1.75% APY
2-Year MYGA – 1.75% APY
4-Year MYGA – 2.00% APY
5-Year MYGA – 2.25% APY
10-Year MYGA – 2.50% APY
Rates effective 4/1/2020. Subject to change. Underwritten by ELCO Mutual.
Liquidity Options
MYGA options of four years or more offer free withdrawals of interest at any time as well as up to 15% free withdrawal of principal.
Minimum Investment
The minimum investment amount for a tax-qualified contract is $5,000 and the minimum investment amount for a non-qualified contract is $10,000. Plus, the owner has 90 days to add any additional funds.
Tax Status
This product is available in either a tax-qualified or non-qualified contract.
Product Availability
This product is available in 36 states. For specific information on the availability in your states, please contact our office directly. Policy Form No. SPD11-05
and SPD11-10.
and SPD11-10.
A SINGLE PREMIUM DEFERRED ANNUITY MAY BE RIGHT FOR YOUR CLIENT IF THEY:
Desire a conservative investment vehicle.
Want to receive a competitive rate of return.
Prefer some liquidity in accessing funds.
Desire an alternative to a CD.
ADDITIONAL PRODUCT INFORMATION
This safe, fixed annuity provides a competitive, guaranteed interest rate over a specified term. All the risk is carried by the insurance company. This a safer option than indexed and variable annuities, which do not offer guaranteed results and put the risk on the consumer. Saving for a secure future is the product’s number one goal.
While not typically used by individuals or spouses of those about to enter a nursing home, should that become the case, the tax-deferred annuity can be annuitized, meaning it will begin making regular payments to the owner. It can also be made into an irrevocable, non-assignable contract, ensuring it meets Medicaid’s strict regulations. This product is designed to empower its owner, not impede their planning options.
