SPDA

SINGLE PREMIUM DEFERRED ANNUITY

ApplicationAnnuity AdvantagesAnnuity Terms


Below are some of the key features of any annuity policy.

To learn more about annuities you can visit the Texas Department of Insurance website.


Guaranteed Interest Rate

The interest you earn on the annuity is either fully guaranteed or has a minimum guaranteed rate that can increase over time.

When the interest rate is fully guaranteed (like in the immediate or deferred annuities) you will earn an interest on the annuity that will never change, even if the interest rate in the market changes.

When there is a minimum guaranteed interest rate (like in the Savings Annuity) the rate will never be lower than the guaranteed rate (3% per year in the case of the Savings Annuity) but may increase if the market conditions allow it.


Tax-Deferred Growth

In an annuity, the interest your earn is not taxed until the time you withdraw the funds from the annuity. That deferral of taxes allows your total annuity balance to grow faster compared to none tax-deferred with the same return.

Note: There are no tax advantages to purchasing a fixed annuity in IRAs, 401(k)s or other similar retirement savings vehicles.


Flexible Income Options

During the guarantee period, an investor has the option to take systematic withdrawals, usually limited to their interest. Investors have the option to start, stop and adjust their withdrawal amount, subject to certain limitations. An annuity’s income stream can also be guaranteed by the insurance company for as long as the investor lives.


Probate Avoidance

Annuity proceeds paid to the beneficiaries upon the investor’s death are excluded from probate on their estate.


Judgement Protection

In most states in the United States an annuity is protected from judgement. That means that the annuity balance cannot be used to pay the judgement against you.


Each annuity has different terms, payments options, and other limitations. Make sure you understand the annuity you purchase. If you have any questions, give us a call at (855) 966-1111.
Below are the main terms of the Single Premium Deferred Annuity. Please note this is only a partial description of the terms. Full description is included in the annuity policy.

Click here to view a sample of the Single Premium Deferred Annuity policy.

Click here to view a Disclosure Certificate of the annuity policy terms.

Click here to view a consumer brochure for the Single Premium Deferred Annuity.


Single Premium

As the name suggests, you make one contribution into the annuity when you purchase it. This premium will start earning interest from the date the annuity contract is issued.


Guaranteed Interest Rate

When purchasing the annuity you will decide on the term during which you will earn a minimum guaranteed interest rate. The terms available under this annuity are 5, 7, or 10 years. The interest rate you will earn during that period cannot be lower than the guaranteed interest rate regardless of any changes in the market.


Annuitization

Annuitizing the annuity means to convert the amount you accumulated in your annuity account into a stream of monthly payments. You may annuitize your account at the end of the guaranteed interest term. You also have the option to annuitize the account at any time after the first year of the annuity.

When annuitizing your account you will have a number of options to choose from. You can receive payments for a certain number of years or for the rest of your life.


Withdrawal Charges

The annuity contract includes withdrawal charges in case you decide to withdraw your funds prior to the end of the guaranteed interest period. Those charges are reduced over time. They are also waived in certain situations, for example, if the annuity owner dies.


Market Value Adjustment

Market Value Adjustment (MVA) is used to adjust the value of your annuity account in case you decide to withdraw the funds prior to the end of the interest guarantee period. The purpose of the MVA is to adjust the account – up or down – to the changes in the interest rate in the market.


10% Free Withdrawal

During each year of the annuity you may withdraw up to 10% of the annuity value free from withdrawal charges.


Accumulated Interest withdrawal

During the term of the annuity you may withdraw the monthly interest accumulated in your account free of withdrawal and MVA charges. This option can provide you a monthly income without reducing the principal amount of your annuity.


When selecting the best annuity for you make sure you fully understand the term of each annuity. While annuities have many advantages, they may have early withdrawal fees and other restrictions.

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