What Should I Do With My Genworth SecureLiving Index 10 Plus Annuity?
The Genworth SecureLiving® Index 10 Plus Annuity is a single-premium, fixed deferred annuity that offered both index-based and fixed interest crediting strategies, designed to provide growth potential and protection for retirement savings. However, this annuity is no longer being sold. If you currently own one, you may be wondering what your options are. Here’s a comprehensive guide to help you understand your choices.
Key Features of the SecureLiving Index 10 Plus Annuity
- 5% Premium Enhancement
- A 5% bonus was added to your initial premium on day one, with the enhancement vesting over a 10-year period.
- Tax-Deferred Growth
- Earnings within the annuity grow tax-deferred, meaning you won’t owe taxes until you withdraw the funds.
- Index and Fixed Interest Crediting Strategies
- Options include:
- S&P 500® Index-based strategies with protection from market losses.
- Fixed rate strategies for guaranteed growth.
- Options include:
- Bailout Provision
- If the annual cap rate on the annual cap strategy falls below a certain threshold, you can withdraw your entire contract value penalty-free.
- Withdrawal Options
- Up to 10% of your contract value can be withdrawn annually without penalty, starting in the second year.
- A waiver allows for up to 20% free withdrawals in case of medical care confinement after the first year.
- Surrender Charges
- If you withdraw more than the free amount during the first 10 years, a surrender charge applies. The charge decreases over time, starting at 9% in the first year and reaching 0% after year 10.
What Are My Options Now?
Since the SecureLiving Index 10 Plus is no longer available for new purchases, your current options depend on your financial goals:
1. Keep the Annuity
If you’re satisfied with the current performance and benefits of your annuity, you can continue holding it until maturity. You’ll benefit from:
- Continued tax-deferred growth.
- Access to annual penalty-free withdrawals up to 10%.
- Guaranteed lifetime income if you elected the optional Income Protection rider.
2. Annuitize the Contract
At the end of the contract term, you have the option to annuitize the contract, turning your accumulated value into a stream of guaranteed income for life or a set period.
3. Take Advantage of the Bailout Provision
If the annual cap rate on your index strategy falls below the specified bailout cap rate, you can withdraw your entire contract value without incurring surrender charges or losing unvested premium enhancements.
4. Replace the Annuity with a New Product
If your financial needs have changed or you’re looking for a product with better features, you might consider replacing your SecureLiving Index 10 Plus with a new annuity. Modern annuities may offer:
- Higher participation rates or caps.
- More flexible withdrawal options.
- Enhanced income riders with better payout rates.
How We Can Help
At The Annuity Expert, we specialize in helping individuals like you navigate their annuity options. Whether you need assistance understanding your current annuity, have questions about your withdrawal options, or are considering replacing your SecureLiving Index 10 Plus with a new annuity, we’re here to help.
- Free Annuity Comparison: We can provide a side-by-side comparison of your current annuity and newer annuity products to see if switching makes sense for you.
- No-Obligation Consultation: Have questions? Our experts are available to answer them, explain your contract’s fine print, and guide you in making an informed decision.
- Help with Replacement: If replacing your annuity is the best option, we’ll walk you through the process step by step.
Contact Us
For personalized assistance, contact us at The Annuity Expert. We’ll help you determine the best course of action for your SecureLiving Index 10 Plus Annuity and ensure you’re prepared for whatever lies ahead.
Don’t wait—reach out today for a free consultation and get the clarity you need to make the best decision for your financial future!
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