Great American SecureGain 5 (high-band) are 5-year fixed rate annuities that offer:
- Growth with a bonus and increasing interest rate: During the initial term, the SecureGain 5 offers an interest rate bonus and an increasing interest rate to help build your retirement savings.
- Safety of principal: Regardless of market conditions, you won’t lose the money you contribute to your annuity unless you take a withdrawal or surrender your contract during its early withdrawal charge period.
- Guaranteed retirement income: When you’re ready to turn the money you’ve accumulated in your annuity into retirement income, you can select from a variety of payout options, including an income stream that will last for the rest of your life.
Simply put, an annuity is a contract between you and an insurance company. It is a long-term financial vehicle that’s designed to protect and grow your money, and then provide a stream of income during your retirement.
In fact, other than pensions, annuities are the only products that provide guaranteed lifetime income.
How Your Money Grows
When you purchase your annuity, we set a base interest rate for the initial term. During the first term year, your base interest rate receives a 0.25% bonus for Great American’s SecureGain 5. After the first term year, the base interest rate increases by 0.10% each year during the initial term. Research 5-year fixed annuity rates to earn the highest interest.
Related Reading: How much interest does an annuity pay?
What Is The Benefit Of Tax-Deferred Growth?
One of the benefits of an annuity is the opportunity for your money to grow tax-deferred. This means no taxes are paid until you take a withdrawal, so your money can grow at a faster rate than it would in a taxable product.
What are the benefits of an annuity? In addition to tax-deferred growth, annuities provide:
Guaranteed retirement income
With the average retirement lasting 18 years, you may worry about outliving your savings. The SecureGain 5 provides the opportunity to turn the money you’ve accumulated in your annuity into a steady stream of retirement income. Depending on which payout option you choose, income benefit payments are made for a specific number of years or for life.
Compare immediate fixed annuity rates here.
Protection for your loved ones
No one likes to think about it, but part of achieving peace of mind is knowing what would happen to your money if you pass away unexpectedly. With the SecureGain 5, any death benefit is paid directly to your beneficiaries, which allows them to receive your financial legacy without the cost and delays of probate.
Great American Life Insurance is also an inexpensive way to leave a death benefit for beneficiaries, tax-free.
Consider Your Liquidity Needs
SecureGain 5 is intended to be a long-term product. However, you will have access to a portion of your money each year with penalty-free withdrawals.
During the first contract year, you may withdraw up to 10% of your purchase payment. After the first contract year, 10% of the account value on the most recent contract anniversary may be withdrawn.
It’s important to note withdrawals in excess of this amount may be subject to early withdrawal charges and a market value adjustment.
Early withdrawal charges and market value adjustments end after five years.
Included waiver riders
Extended care waiver rider:
After the first contract year, if you are confined to a nursing home or long-term care facility for at least 90 consecutive days, you have the option to withdraw up to 100% of the account value without incurring an early withdrawal charge.
Terminal illness waiver rider:
After the first contract year, if you are diagnosed by a physician as having a terminal illness, you have the option to withdraw up to 100% of the account value without incurring an early withdrawal charge. A terminal illness is defined as having a prognosis of survival of 12 months or less, or a longer period as required by state law.
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.