Columbus Life Account Max provides an additional way for you to plan for your retirement while enjoying tax-deferred growth and the opportunity to receive a stream of income for as long as you live.
With AccountMax, your money has the ability to grow faster than in a currently taxed alternative paying the same fixed rate.
Additionally, since taxes are not owed until you begin receiving interest income, you control when you pay taxes.
Furthermore, an annuity’s estate-planning benefits may help with asset protection and distribution to your beneficiaries in the way you intended.
It’s comforting to know you have provided for your loved ones.
Competitive Rate Guarantee
Columbus Life’s AccountMax is a single-premium deferred fixed annuity (SPDA) that can provide favorable interest crediting.
Currently, you may lock in guaranteed rates for either 7 or 10 years.
At the end of the renewal period, the contract will be credited with an annual renewal rate.
The minimum guaranteed rate is specified in the contract when issued and by law must be between 1 and 3 percent.
First-Year Interest Rate Enhancement Maximizes Your AccountMax
Your initial rate includes a special 2 percent interest rate enhancement guaranteed for one year.
Following the first year, the initial rate less the enhancement will be guaranteed for the remainder of the period you selected.
No Current Taxes
Interest earnings grow tax-deferred until withdrawn, usually at retirement age. Contract values have the ability to grow faster than they would in a currently taxed fixed alternative paying the same rate.
Easy Access
For financial flexibility, a portion of your contract value is available free of surrender charge.
- Up to 10 percent of accumulated value may be withdrawn each year without a surrender charge. All withdrawals during a guaranteed period are subject to a market value adjustment. The minimum withdrawal is $250, and at least $2,500 must remain in the account after the withdrawal.
- Systematic withdrawals of either the 10 percent penalty-free amount or the interest earnings are available annually without a surrender charge. The minimum withdrawal is $100 ($50 if electronic funds transfer) and is available on a monthly, quarterly, semiannual, or annual basis. Systematic withdrawals are not available with Roth IRA plans.
Surrender Charges
A charge applies only to amounts in excess of the free withdrawal provisions and decreases based on the number of years that have elapsed since the premium payment was received.
The surrender charge will vary based on the year and the corresponding percentage of the amount withdrawn.
Waiver of Surrender Charge
In addition to the access described under Easy Access, there is no surrender charge:
- If the annuitant or owner is confined to a long-term care facility or hospital at the time of surrender and has been so confined for at least 30 consecutive days (subject to specific rider terms and availability).
- If the owner is diagnosed with a terminal illness and has a life expectancy of no more than 12 months (subject to specific rider terms and availability).
- For scheduled 72(t) distributions4 and IRS-required minimum distributions. (This is by current company practice and is not guaranteed.)
- Upon the death of the owner(s).
Your Income Payout Options
Customize your income payment options to fit your needs. Columbus Life offers several options so you can choose to elect income payment when you need it.
Choosing Your Guaranteed Income Options
A variety of guaranteed income options is available. You may choose from among scheduled payments guaranteed to continue for a lifetime, income payments for a period of time, or even a one-time payment. Income payment guarantees are backed by the claims-paying ability of Columbus Life Insurance Company.
Income Payment Options (Annuitization)
Owners have multiple options to annuitize the contract for income, including payments for one or two lives:
- The default income payment option is a monthly annuity payment for life, 10 years certain.
- Life income, 20 years certain.
- Fixed period or a fixed amount.
- Life income.
- Joint and survivor income, at 100, 75, 66⅔ or 50 percent to the survivor.
Estate-Planning Benefit
Upon the death of the owner, Columbus Life guarantees that the legally designated beneficiary will receive the current contract value at the time of distribution, avoiding the delays, expense, and publicity of probate. No surrender charge or market value adjustment applies.
Enhanced Death Benefit
After-Tax Value Is What Matters Most
When it comes to planning your financial future, an annuity’s estate planning benefit can help protect and distribute your assets to your beneficiaries in the way you intended.
Because an annuity’s growth is taxable as ordinary income, it’s important to consider how much your contract might be worth after taxes.
Think about it.
Your beneficiaries may have to use some of the gains in your annuity to pay taxes at your death.
Columbus Life’s Enhanced Death Benefit6 option helps preserve the after-tax value of your contract.
The Enhanced Death Benefit Rider option helps allow you to:
- Maximize the annuity’s death benefit.
- Provide general wealth transfer to your beneficiaries.
- Realize substantial gain before the benefit is capped.
- Compensate for taxes and expenses.
What Does the Benefit Do?
The Enhanced Death Benefit Rider option provides an additional amount to help offset the potential tax liability or other expenses your beneficiaries may incur at your death.
Depending on your age when you purchase the contract, the rider will pay an extra death benefit of up to 40 percent of your contract earnings, as defined in the rider.
This benefit can be as much as 100 percent of your net premium payment.
Rest assured, once selected, the annual cost (as shown below) of the benefit will remain level as you grow older.
And the payment is guaranteed by Columbus Life Insurance Company, recognized for its outstanding financial strength and stability.
How Does Enhanced Death Benefits Work?
The amount payable from the Enhanced Death Benefit is calculated as a percentage of the gain in the contract, either 40 percent or 25 percent, based on the oldest owner’s age at contract issue.
The gain is equal to the contract value minus the net premium payment.
The benefit must be elected at the time the annuity is purchased and will continue for the life of the contract.
If a spouse is elected as beneficiary and elects to continue the annuity, the benefit option is also continued and paid instead at the spouse’s death to the new beneficiary at that time.
It’s a relatively inexpensive option that can add up to significant benefits for its recipients.
Life Insurance Alternative
If you’re seeking to enhance a death benefit for estate planning purposes, also shop and compare life insurance quotes too. It’s rare we don’t find a solution. Life Insurance is tax-free for beneficiaries while annuities are tax-deferred for beneficiaries.
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.
