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Federal Life Insurance Company (Mutual)

 

Annuities



FIXED DEFERRED ANNUITIES

A low cost way to maximize the safety and growth of your savings!

Advantages
  • Guaranteed principal*
  • Guaranteed death benefit
  • Guaranteed minimum interest rate
  • Earns interest on a tax-deferred basis
  • Can provide pension-like income for retirement years[+/-]

      • When you decide to begin receiving scheduled payments from your annuity's account value, you can choose from among the following Annuity Payout Options (in lieu of a lump sum payment):

    • Monthly income for life
    • Monthly income for a period certain and life thereafter
    • Monthly income for you and your spouse for as long as the survivor lives
    • Installment payments for a specified period or for a specified amount
  • No annual service charge
  • Suitable for traditional IRAs and Roth IRAs
    • [+/-]
      You may consider using a deferred annuity as an investment vehicle for your traditional IRA or Roth IRA.
        Traditional IRA Roth IRA
      Eligibility Generally, anyone under age 70 1/2 with earned income as well as spouses (if filing jointly) of earners who have no income of their own. Anyone with earned income and spouses of wage earners who have no income of their own.
      Contribution Limitations 2008 tax year: 100% of income up to $5,000, $6,000 if age 50 or older 2008 tax year: Up to $5,000, $6,000 if age 50 or older with limitations based on Modified Adjusted Gross Income and tax filing status
      Taxes:    
         Contributions Fully or partially tax deductible depending on your participation in an employer - sponsored retirement plan, income and tax filing status Not tax-deductible
         Earnings Taxes are deferred until you withdraw funds Grow tax-free, subject to limitations
         Withdrawals Fully taxable and subject to federal tax penalties if made before age 59 1/2 or if withdrawals do not begin upon reaching age 70 1/2 Contributions can be withdrawn at any time without taxes or penalties. Earnings can be withdrawn without taxes or penalties if you are 59 1/2 and your account has been open 5 years or more. No requirement to begin withdrawals at age 70 1/2.

      This information is presented to show the general differences between traditional and Roth IRAs. You should consult with a qualified tax advisor, CPA or financial advisor for more information and for specific investment planning advice.
*You may incur a surrender chargeA penalty fee assessed by an insurance company against withdrawals from your annuity's account value. in the event of early plan termination.


SINGLE PREMIUM


Maxi-Saver     [+/-]

  • Interest Rate: Guaranteed for first certificate year, thereafter based on current market conditions, but never less than guaranteed minimum rate
  • Issue ages: 0 - 85
  • Minimum premium: $2,000
  • Maximum premium: $250,000 (unless otherwise approved by Federal Life)
  • Partial withdrawals: You may withdraw up to 10% of your account value at the start of each certificate year without incurring a surrender charge (permitted twice annually)
  • Surrender chargesA penalty fee assessed by an insurance company against withdrawals from your annuity's account value.: Total or partial withdrawals (except as noted above) are subject to the following surrender charges applied against the account value: Years 1-3 = 7%, Year 4 = 6%, Year 5 = 5%, Year 6 = 4%, Years 7+ = 0%





Maxi-Saver Guarantee (MSG) Series     [+/-]

    Our MSG Series consists of four plans: MSG 3, MSG 3+, MSG 4, and MSG 5. Interest rate guarantees and surrender charges vary by plan (see below for more information).

  • Current interest rates vary by plan
  • Initial Current Interest Rate Guarantees: MSG 3 and MSG 3+: 3 years, MSG 4: 4 years, MSG 5: 5 years, thereafter based on current market conditions, but never less than the guaranteed minimum interest rate
  • Issue ages: 0 - 85
  • Minimum premium: $2,000
  • Maximum premium: $250,000 (unless otherwise approved by Federal Life)
  • Partial withdrawals: You may withdraw up to 10% of your account value at the start of each certificate year without incurring a surrender charge. Partial withdrawals are permitted twice annually.
  • Surrender ChargesA penalty fee assessed by an insurance company against withdrawals from your annuity's account value.: Total or partial withdrawals (except as noted above) are subject to the following surrender charges applied against the account value as detailed above.



    •   Surrender Charges
    MSG3: Years 1-3 = 4%, Years 4+ = 0%
    MSG3+: Years 1-6 = 5%, Years 7+ = 0% (offers a higher current interest rate than MSG 3)
    MSG4: Years 1-4 = 5%, Years 5+ = 0%
    MSG5: Years 1-5 = 5%, Years 6+ = 0%





Accumulator     [+/-]

  • Interest Rate: Guaranteed for first certificate year, thereafter based on current market conditions, but never less than guaranteed minimum rate
  • Issue Ages: 0 - 65
  • Minimum premium: $2,000
  • Maximum premium: $250,000 (unless otherwise approved by Federal Life)
  • Partial withdrawals: You may withdraw up to 10% of your account value at the start of each certificate year without incurring a surrender charge (permitted twice annually)
  • Surrender chargesA penalty fee assessed by an insurance company against withdrawals from your annuity's account value.: Total or partial withdrawals (except as noted above) are subject to the following surrender charges applied against the account value: Years 1-3 = 11%, Year 4 = 10%, Year 5 = 9%, Year 6 = 8%, Year 7 = 7%, Year 8 = 6%, Year 9 = 5%, Year 10 = 4%, Year 11 = 3%, Year 12 = 2%, Year 13 = 1%, Year 14 = 0%




The following chart presents a general comparison between our single premium deferred annuity plans:

PLAN INTEREST RATES INTEREST GUARANTEES SURRENDER PENALTIES
Maxi-Saver Middle Middle* Middle
MSG Series Mid to Lower LONGEST Mid to SHORTEST
Accumulator HIGHEST Middle* Longest
    *Guarantees are the same




FLEXIBLE PREMIUM

Flexi-Saver     [+/-]

  • Interest Rate based on current market conditions but never less than guaranteed minimum rate
  • Issue ages: 0 - 75
  • Minimum premium: $25
  • Maximum premium: $250,000 (unless otherwise approved by Federal Life)
  • Partial withdrawals: Permitted once a year, minimum amount is $100 and cannot reduce account value to less than $500 (may be subject to withdrawal charges described below)
  • Total withdrawals: Permitted any time but may be subject to withdrawal charges described below
  • Withdrawal charges:


    • on account values attributable to premiums held on deposit: Withdrawal Charge
    less than 3 years 7%
    at least 3 years but < 4 years 6%
    at least 4 years but < 5 years 5%
    at least 5 years but < 6 years 4%
    at least 6 years 0%


  • Withdrawals are on a first-in first-out basis
  • The account value attributable to each premium payment will be recorded separately
  • Withdrawal charges will be calculated as of the date of withdrawal
  • Withdrawal charges will be waived upon annuitization or death





VARIABLE ANNUITIES

COMING SOON! Check back later for more details



This is not a complete discussion of any plan or of the various aspects of annuities. Federal tax penalties may be imposed upon certain transactions. Personal tax situations and your use of annuities should be reviewed with your attorney or tax advisor.


For more information, including current interest rates and whether or not a product is approved for sale in your state, please contact a Federal Life representative.


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