Product Spotlight: A Unique Fixed Index Annuity

As you approach retirement, your focus shifts to securing a stable income and protecting the assets you’ve built over the years. This month, we’re excited to feature a unique fixed index annuity designed specifically to help you achieve your retirement goals.

What is a Fixed Index Annuity?

A fixed index annuity offers a powerful combination of growth potential and protection. It provides you with retirement income through interest earned on market indices, ensuring your money is never exposed to downside market risk. When the index rises, your annuity value increases. When the index falls, your value remains unchanged. This annuity is structured to ensure you never lose your principal investment, making it a reliable choice for those nearing retirement.

Benefits of This Unique Fixed Index Annuity

Protection and Growth

• Principal Protection: Your initial investment is protected from market downturns, ensuring that your hard-earned savings remain intact.
• Tax-Deferred Growth: Earnings accumulate tax-deferred, allowing your money to grow without the drag of immediate taxes. This means more of your money stays invested, compounding over time.

Flexible Income Options

• Guaranteed Lifetime Income: With the optional Income Benefit Rider (IBR), you can secure a lifetime income stream. This rider provides peace of mind, knowing you will receive a steady income for as long as you live.
• Withdrawal Privileges: Access up to 10% of your Accumulation Value each year after the first contract year without any charges. This flexibility allows you to manage your finances and handle unexpected expenses without penalties.

Diverse Investment Strategies

• Premium Flexibility: Add subsequent premiums at any time and allocate them as you choose. This flexibility allows you to adapt your investment strategy as your financial situation evolves.
• Index Accounts: Choose from a variety of index accounts to diversify your investment strategy. These accounts are linked to different market indices, providing multiple avenues for growth.
• Multiple Crediting Strategies: Benefit from various strategies like Point-to-Point Cap, Participation, and Performance Trigger. These strategies are designed to optimize your returns based on market performance, ensuring you get the most out of your investment.

Peace of Mind Features

• Account Transfers: Easily transfer money among various accounts on each contract anniversary. This feature allows you to adjust your investment allocations to respond to market conditions and personal financial goals.
• Free-Look Period: Review your contract for a specified period and receive a full refund if not satisfied. This period allows you to thoroughly evaluate the terms and benefits of the annuity without financial risk.
• Death Benefit: Your beneficiaries receive the full Accumulation Value without surrender charges. This ensures that your loved ones are financially protected and can benefit from your savings.

Enhance Your Retirement with the Income Benefit Rider (IBR)

• Lifetime Income: Enjoy a 7% accumulation plus index and interest credits. This provides a robust growth rate, enhancing your retirement income potential.
• First-Year Bonus: A 25% bonus added to your Benefit Base for premiums paid in the first year. This substantial bonus boosts your initial investment, giving you a head start on building your retirement savings.
• Chronic Illness Protection: Double your income for up to five years if you become chronically ill, included at no additional cost. This feature provides additional security, helping you manage potential healthcare costs in retirement.

Additional Benefits

• Nursing Home Waiver: Access your Accumulation Value without surrender charges if confined for 90 consecutive days. This waiver provides financial flexibility during challenging times, ensuring you have access to your funds when you need them most.
• Terminal Illness Rider: Withdraw up to 75% of your Accumulation Value if diagnosed with a terminal illness. This rider offers peace of mind, allowing you to access your savings to cover medical expenses or fulfill personal wishes.
• Lump-Sum Payment Option: Available at any time, with surrender charges declining annually over seven years. This option provides liquidity, allowing you to withdraw your savings if your financial situation or goals change.

Index and Crediting Strategies

Fixed Rate Account

1-Year Interest Account: The interest rate is guaranteed for one contract year and may change subject to the contractual Minimum Guaranteed Interest Rate on each contract anniversary.

Index Accounts

A variety of index accounts offer earnings based on the changes of a specified index. Index credits are never less than zero and are added to accounts at the end of the one-year or two-year period.

Crediting Strategies

• 1-Year Point-to-Point Cap: Percentage change from the previous contract anniversary, up to a specified cap.
• 1-Year Point-to-Point Participation: Percentage change from the previous contract anniversary, multiplied by the participation rate.
• 1-Year Point-to-Point Performance Trigger: Percentage change from the previous contract anniversary, with index credits based on a declared Performance Trigger Rate if index growth is positive. If the index decreases or has no growth, index credits are zero.
• 1-Year Monthly Average Cap: Percentage change from the previous contract anniversary to the monthly index average, up to a specified cap.
• 1-Year Monthly Average Participation: Percentage change from the previous contract anniversary to the monthly index average, multiplied by the participation rate.
• 1-Year Monthly Cap: Cumulative sum of capped monthly changes from the previous contract anniversary. Each monthly gain is subject to a cap, but monthly declines are not subject to a floor.
• 2-Year Point-to-Point Participation: Percentage change from the previous two-year contract anniversary, multiplied by the participation rate.

Secure Your Future Today

This fixed index annuity is a powerful tool to ensure a secure and fulfilling retirement. For more detailed information about this exceptional product, contact your financial advisor. They will guide you through the complete contract provisions and details before purchasing.

Ensure your retirement is in safe hands with this unique fixed index annuity.

Enhanced Income Withdrawals During Chronic Illness

It’s no secret that the cost of nursing care later in life could have a significant impact on your retirement savings. To help you prepare for these potential expenses, the IBR features Enhanced Income Withdrawals included at no additional cost.

If you become chronically ill, your income withdrawal amounts may be doubled for up to five years; for joint owners, the increase is 50%. A chronic illness is defined as the permanent inability to perform at least two of six activities of daily living, which include eating, toileting, transferring, bathing, dressing, and continence – or permanent severe cognitive impairment. If utilized, the original income payment amount resumes when Enhanced Income Withdrawals end.

Enhanced Income Withdrawals may be put into action after your contract has been in effect for three years if the contract has an Accumulation Value greater than zero, no additional premiums have been added in the last two years, and the owner is a U.S. resident not older than age 90. During the Enhanced Income Withdrawal period, the chronic illness must be certified by a physician annually.

Important Considerations

Account Transfers: On each contract anniversary, you may transfer money among the various accounts offered in your contract. Transfers out of a two-year account are allowed only at the end of each two-year period.
Allocation of Additional Premiums: At any time, you can request a change to your premium allocations. These updates take effect on the following contract anniversary and apply only to any additional contributions during the current contract year.

Availability and rates for this unique fixed index annuity may vary over time, and the product could change or become unavailable in the near future. 

This material is not intended to provide investment advice to you or to your specific situation. The guarantees expressed in this article are based on the claims-paying ability of the issuing insurance company. Surrender of the contract may be subject to surrender charges or market value adjustment. Withdrawals before age 59½ may result in a 10% IRS penalty tax. Withdrawals do not participate in index growth. In the event of a full surrender, charges will apply to any penalty-free amounts taken during the same contract year. If the Income Benefit Rider is elected, any withdrawals prior to the start of income withdrawals will reduce the Benefit Base proportionately.

The “S&P Multi-Asset Risk Control 5% Excess Return Index,” “S&P 500 Dynamic Intraday TCA Index” and “S&P 500*” Indices (“Indices”) are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by the issuing insurance company. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by the issuing insurance company. The products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such products nor do they have any liability for any errors, omissions, or interruptions of the Indices.

Neither Barclays Bank PLC, or Barclays Capital Inc., nor any affiliate (collectively “Barclays”) is the issuer or producer of this fixed index annuity contract and Barclays has no responsibilities, obligations, or duties to investors in the contract. The Barclays Focus50 Index (“the Index”), including as applicable any component indices that form part of the Index, is a trademark owned by Barclays Bank PLC or Barclays Capital Inc. and licensed for use by the issuing insurance company. While the issuing insurance company may for itself execute transactions with Barclays in or relating to the Index in connection with the contract, investors acquire the contract from the issuing insurance company and investors neither acquire any interest in the Index nor enter into any relationship of any kind whatsoever with Barclays upon making an investment in the contract. The contract is not sponsored, endorsed, sold, or promoted by Barclays, and Barclays makes no representation regarding the advisability of the contract or use of the Index or any data included therein. Barclays shall not be liable in any way to the issuer, investors, or to other third parties in respect of the use or accuracy of the Index or any data included therein. Bloomberg Index Services Limited is the official index calculation and maintenance agent of the Index, an index owned and administered by Barclays. Bloomberg Index Services Limited does not guarantee the timeliness, accuracy, or completeness of the Index calculations or any data or information relating to the Index. Bloomberg Index Services Limited makes no warranty, express or implied, as to the Index or any data or values relating thereto or results to be obtained therefrom, and expressly disclaims all warranties of merchantability and fitness for a particular purpose with respect thereto. To the maximum extent allowed by law, Bloomberg Index Services Limited, its affiliates, and all of their respective partners, employees, subcontractors, agents, suppliers, and vendors (collectively, the “protected parties”) shall have no liability or responsibility, contingent or otherwise, for any injury or damages, whether caused by the negligence of a protected party or otherwise, arising in connection with the calculation of the Index or any data or values included therein or in connection therewith and shall not be liable for any lost profits, losses, punitive, incidental, or consequential damages.

Note: Annuity and insurance products are not deposits nor guaranteed by any bank. They are not insured by the FDIC or any other agency of the federal government. Certain products may lose value.

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