Annuities
Fixed Deferred Annuities ~ A way to maximize the safety and growth of your savings!
An annuity is a contract between you and an insurance company designed for retirement purposes. You make an upfront purchase (with either a single or multiple payments) and in return receive regular distributions in the future.
Advantages
- Guaranteed principal (1), (2)
- Guaranteed death benefit (2)
- Guaranteed minimum interest rate (2)
- Earns interest on a tax-deferred basis (3)
- Can provide pension-like income for retirement years
- No annual service charge
- Suitable for Traditional IRAs and Roth IRAs
(1) You may incur a surrender charge in the event of early plan termination.
(2) All guarantees are based solely on the claims-paying ability and financial strength of the issuer.
(3) Earnings taken from an annuity may be subject to ordinary income tax and may be subject to a 10% IRS early withdrawal penalty if taken before age 59½.
The information presented here is not a complete discussion of any plan or of the various aspects of annuities. Refer to the policy for complete terms and conditions. Personal tax situations and your use of annuities should be reviewed with your attorney or tax advisor.
Single Premium
Available for sale in AL, AZ, CA, CO, FL, GA, IA, ID, IL, IN, KS, KY, LA, MD, MI, MN, MO, MS, NE, NJ, NM, NC, OH, OK, PA, SC, TN, TX, UT, VA, WA, WI, WV.
Our MSG Series consists of two plans: MSG5 and MSG7.
- Interest rates and interest rate guarantees vary by plan
- Initial Interest Rate Guarantees
| Plan | GUARANTEE PERIOD |
| MSG5 | 5 Years |
| MSG7 | 7 Years |
- After the guarantee period expires, interest rates are based on current market conditions, but will never be less than the guaranteed minimum interest rate
- Issue Ages: 0 – 85
- Minimum Single Premium: $2,000
- Maximum Single Premium: $250,000 (unless otherwise approved by the Home Office)
- Partial withdrawals: After the first contract year, up to 10% of the beginning of year account value can be withdrawn each contract year free of withdrawal charges (partial withdrawals in excess of the 10% limit may be subject to surrender charges as described below)
- Total withdrawals: Permitted any time but may be subject to surrender charges described below
- Surrender charges:
| |
Surrender/Withdrawal Charges |
| Contract Year |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8+ |
| MSG5 |
7% |
6% |
5% |
4% |
3% |
0% |
0% |
0% |
| MSG7 |
7% |
6% |
5% |
4% |
3% |
2% |
1% |
0% |
- Surrender charges will be calculated as of the date of withdrawal
- Surrender charges will be waived upon annuitization or death
- Annuity Income Options (in lieu of a lump-sum distribution):
- 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
Flexible Premium
Available for sale in AL, AZ, CA, CO, FL, GA, ID, IA, IL, IN, KS, KY, LA, MD, MI, MN, MO, MS, NC, NJ, NM, NV, OH, OK, PA, SC, TN, TX, UT, VA, WA, WI, WV.
- Interest Rate based on current market conditions but never less than guaranteed minimum rate
- Issue ages: 0 - 85
- Minimum Premiums: Initial - $50, Additional - $25
- Maximum premium: $250,000 (unless otherwise approved by Federal Life)
- Partial withdrawals: After the first contract year, up to 10% of the beginning of year account value can be withdrawn each contract year free of withdrawal charges (partial withdrawals in excess of the 10% limit may be subject to surrender charges as described below)
- Total withdrawals: Permitted any time but may be subject to surrender charges described below
- Surrender charges:
| | Years Since Premium Payment |
| | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7+ |
| Percentage | 7% | 6% | 5% | 4% | 3% | 2% | 1% | 0% |
- Withdrawals are on a first-in first-out basis
- The account value attributable to each premium payment will be recorded separately
- Surrender charges will be calculated as of the date of withdrawal
- Surrender charges will be waived upon annuitization or death
- Annuity Income Options (in lieu of a lump-sum distribution):
- 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
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, please contact a Federal Life representative. Click here to speak to an agent about any Federal Life plan.
