A Single Premium Deferred Annuity is a tax-deferred annuity designed for healthy clients planning for retirement. It serves as a valuable pre-planning tool wherein the owner receives a competitive rate of return. Taxes are not due on any interest earned until the owner makes withdrawals 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
If your client opts for a MYGA of four years or more, they can take advantage of free interest withdrawals at any time as well as free withdrawals for up to 15% of principal.
Tax Status
Single Premium Deferred Annuities are available in either a tax-qualified or a non-qualified contract.
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. The owner of the annuity can add additional funds within 90 days of the contract purchase.
Product Availability
This product is available in 36 states. To find out if it is available in your state, please contact our office directly. Policy Form No. SPD11-05 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
As a fixed annuity, this product provides a competitive and 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. The number one goal for this product is helping clients save for a secure future.
Funds from a Single Premium Deferred Annuity can be withdrawn without penalty after the contract owner turns 59 ½, though they can still access funds for a fee before then. On top of offering a competitive rate of return, this product also includes a guaranteed death benefit.
INTERESTED IN WORKING WITH US?
Contact our office to get started.
