Advantages of Annuities
Competitive interest earnings. You can choose from five different plans, each offering a different first-year interest rate. Your annuity will earn interest at a rate that will never fall below the plan's guaranteed interest rate.
Tax advantages. A deferred annuity earns interest on a tax-deferred basis. Tax deferral puts you in control of your tax situation. You select when you want take income and pay taxes. If you so choose, you can reinvest your interest and defer paying taxes on the interest. If you want the income now, you can receive monthly checks that are equal to the accrued interest, or you can receive a fixed amount. You pay taxes only on the amount of income you withdraw. You can take the income now or later — it's your choice.
Liquidity. You never know when you are going to need some of your money. You will be able to withdraw money from your annuity at any time. Tax deferral puts you in charge of your income and taxes. Withdrawals are subject to applicable surrender charges, market value adjustments, or excess interest deductions, if any during the contract's early years. Withdrawals taken before age 59 1/2 may incur a 10% federal tax penalty.
Lifetime income. You may someday elect to "annualize" your contract and begin receiving a guaranteed regular income for as long as you live (or for another predetermined length of time.)
Systematic withdrawals. Systematic withdrawals are available for either interest-only payments or fixed amount payments, for totals not exceeding 10% of the annuity value as of the beginning of that contract year. Withdrawals of this type will not incur surrender charges, market value adjustment and/or excess interest deduction.
Partial surrenders. The minimum amount for partial surrender is $250. There is no surrender charge if the cumulative partial surrender amount year-to-date is less than 10% of your annuity value as of the beginning of at that contract year. Surrender charges and market value adjustments or excess interest deductions will be applied for partial surrender amounts greater than this value.
Two surrender charge waivers. Confinement and disability waivers are provided, that allow you to have access to your money without any surrender charges or market value adjustments. (Maximum age 80 for confinement waiver) may not be available in all states, and restrictions apply. See annuity contract for details.
Death benefit. Upon the death of the owner, the death benefit will be the greater of the annuity value or surrender value.