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 incur a surrender charge in the event of early plan termination.
Single Premium
- 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 Charges: 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%
Our MSG Series consists of two plans: MSG 3+ 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+: 3 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 Charges: 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 1-6 = 5%, Years 7+ = 0% |
| MSG5: |
Years 1-5 = 5%, Years 6+ = 0% |
Flexible Premium
- 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 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. Click here to speak to an agent about any Federal Life plan.
