Equitrust Certainty Select 5 Fixed Annuity is a single premium deferred annuity featuring multi-year rate guarantees.
Certainty Select 5 is a fixed annuity that offers choices – choices in guarantee periods, choices in payout options, choices for the stages of your life.
Certainty Select 5 is designed to help meet your unique individual financial needs.
Certainty Select 5 offers guarantee periods of up to 10 years.
Your interest rate is locked in for the duration of the guarantee period selected.
Money When You Need It
- Certainty Select 5 allows you to withdraw cumulative interest at any time without paying any charges.
- Certainty Select 5 can be surrendered in the 30 days before the end of the guarantee period for its full value. Surrenders outside of the 30-day window are subject to a surrender charge. Surrender charges start at 10 percent and decline through the guarantee period.
- After the first year, if the contract owner is confined to a qualified hospital or nursing care center for 90 days or more, surrender charges will be waived during the confinement. Available at issue through age 80.
- If the contract owner is diagnosed with a terminal illness, surrender charges will be waived for a withdrawal of up to 75% of the Accumulation Value. This rider has no additional cost.
- If the annuity owner dies before the guarantee period ends, the beneficiary may elect to receive the Accumulation Value immediately. Withdrawals may be subject to federal income tax and a 10 percent IRS penalty before age 591/2.
- Equitrust Life Insurance is also an inexpensive way to leave a death benefit to beneficiaries.
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MARKET VALUE ADJUSTMENT
Certainty Select 5 contains a feature called the Market Value Adjustment, or MVA.
The MVA is applied to both early surrenders and to withdrawals that exceed the free-withdrawal amount.
The MVA feature allows EquiTrust Life to credit a higher rate of interest to these annuities.
Flexible Accumulation Options
Thirty days before the end of your guarantee period, you have a window of time to make a decision regarding the Accumulation Value of your contract.
You control how your money is used.
You may decide to take no action and stay invested in Certainty Select 5 for another guarantee period.
Or, you may choose among three options that allow you to:
- Receive scheduled payments for at least 10 years or for life
- Make a partial withdrawal.
- Collect the full amount plus accumulated interest
Whatever option you choose, you’ll have the peace of mind that comes with easy access to your funds.
The Value of Tax Deferral
With Certainty Select 5, you make a single payment that builds value on a tax-deferred basis.
In most cases, your earnings will not be subject to income tax until they are withdrawn.
If the value of your contract is not being reduced by taxes, more of your money earns interest each year.
That means greater value for you.
Other Features Applicant Ages
Certainty Select 5 may be purchased by persons up to and including age 90. Any person named as the annuitant must also be age 90 or below.
Retirement Income Planning
If you’re spending the interest from a CD or a fixed annuity to supplement your retirement income, consider a deferred annuity with a lifetime income rider. These annuities would offer a guaranteed income for life (even if the annuity ran out of money), removing the concern of making your money last in retirement and running out of money.
Some lifetime income riders offer a retirement income that increases to keep up with inflation, help pay for long-term care expenses, and offer an enhanced death benefit to help your beneficiaries.