Nassau Life MYAnnuity 5 is a single-premium multi-year guarantee annuity offering clients protection from market volatility.
Nassau Annuity Features
GUARANTEED RATES
You have a choice of a 10% Free Withdrawal Amount or No Free Withdrawal Amount. The election must be made at issue.
INTEREST RATE GUARANTEE TERMS
- Interest rate for each guarantee period is set at issue and guaranteed for the duration selected
- Premium must be held for the full interest rate guarantee period in order to receive the full amount of interest
- At the end of the guarantee period, you have a 30-day window within which to select one of three options:
- Surrender any amount of the contract free of charge
- Renew the contract for another guarantee period of the same duration, if available
- Renew the contract for a different interest rate guarantee period available at that time
- If you do not choose one of these options, the contract will renew automatically for the same guarantee period or the nearest available term. (A reminder will be mailed.)
- Interest rate credited for the new guarantee period will be based on the rates in place at that time and declared in advance
- Interest rate for future guarantee periods will never be less than the minimum guaranteed interest rate of 1%
ACCESSING FUNDS WITHDRAWALS
- Annual free withdrawals up to 10% are available (if elected at issue) without a surrender charge or market value adjustment (MVA) applied
- Withdrawals in excess of the annual free withdrawal amount may be subject to a surrender charge prior to the end of the guarantee period and an MVA
- Withdrawals for Required Minimum Distributions (RMD’s) under the contract will not incur surrender charges or MVA after the first calendar year3
- Withdrawals of income will be subject to tax and, if prior to age 59½ may be subject to a 10% IRS penalty
- Withdrawn amounts will not receive the full interest credit
SURRENDER CHARGE SCHEDULE
- Surrender charges and MVA will be waived upon the contract owner’s death or annuitization after the first contract year
- During the 30-day window period at the end of the guarantee period, you can surrender any amount of the contract without a surrender charge and without the assessment of an MVA
- Nursing home and terminal illness waivers:
- Surrender charges will also be waived if owner is admitted into a licensed nursing home, or
- If owner is diagnosed with a terminal illness that is expected to result in death within six months (24 months in MA).
- Waivers are subject to state approval and certain conditions. See contract for details
MARKET VALUE ADJUSTMENT (MVA)
- The MVA is intended to reflect the change in the interest crediting rate from the start of the guarantee period to the time of surrender or withdrawal, as well as an adjustment for the time remaining in the guarantee period
- The MVA can be positive or negative. There is no limit on a positive MVA. A negative MVA may not cause the amount received upon surrender to be less than 87.5% of premium accumulated at 1%, reduced for net withdrawals
ANNUITY PAYMENT OPTIONS
- You can annuitize your contract after the first year with no penalty
- Nassau offers seven fixed annuity payment options to choose from
DEATH BENEFIT
- Payable on the death of any owner
- Death benefit is equal to contract value (no surrender charges or MVA will apply)
- Death benefit proceeds are paid directly to named living beneficiaries and may not be subject to the probate process
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.
