Introducing the Sagicor Milestone 5 MYGA, a single premium deferred fixed annuity with a 5-year guaranteed rate.
Now is always the best time to start saving for the future. However, selecting the right savings strategy can be difficult and often becomes confusing when considering the many available choices.
How about an easy to understand, simple, and guaranteed way to safely grow your savings?
Sagicor’s Milestone 5 annuity provides a guaranteed fixed rate of interest over a period of time called a guarantee period. Your money grows safely on a tax-deferred basis during this time without market risk.
At the end of the initial guarantee period, money can be withdrawn without surrender charges during a 30-day penalty-free window, left to grow for another guarantee period depending on the initial guarantee period selected, or taken as an income stream in any one of the available annuitization payout options.
With a guaranteed fixed rate of interest, tax-deferred earnings, penalty-free withdrawals, a choice of guarantee periods, and flexibility through multiple options at the end of the initial guarantee period, a Sagicor Milestone 5 MYGA may be a great way to help you reach your savings milestones.
Features & Benefits
MINIMUM PREMIUM/ISSUE AGES
The minimum premium amount is $15,000 with issue ages up to 90 years.
GUARANTEED INTEREST RATES
The entire amount of your premium starts working for you immediately by earning a guaranteed interest rate that grows on a tax-deferred basis for the time period that you select.
PROTECTION OF PRINCIPAL
There is no market risk or concern about market volatility because you are not participating in the stock market; you’re earning a guaranteed fixed interest rate.
With no market risk and a guaranteed interest rate, your money and the interest credited are protected.
Premium payments, less surrender charges, and market value adjustment, if any, are subject to the claims-paying ability of Sagicor.
The Sagicor Milestone 5 MYGA grows on a 100% tax-deferred basis, which may generate a greater accumulation value over time. That’s because paying taxes each year reduces the amount of funds available for growth and compounding.
Your premium will earn interest tax-deferred, and the compounding interest is also tax-deferred. The advantage of tax-deferral is that it may result in greater accumulation over time. Income taxes are only due when you start taking withdrawals.
Beginning in the second contract year, you may withdraw an amount equal to 10% of the last contract anniversary accumulation value without a surrender charge or market value adjustment (MVA).
There is a minimum withdrawal requirement of $500.
Related Reading: How can I get money from my annuity without a penalty?
In the event of death, your beneficiary(ies) will be paid a death benefit equal to the accumulation account value of your annuity without surrender charges or market value adjustment.
A beneficiary may choose to receive the death benefit in either a lump sum or any of the available annuitization options.
Sagicor Life Insurance is also an inexpensive way to leave a death benefit to beneficiaries.
MARKET VALUE ADJUSTMENT (MVA)
A Market Value Adjustment will apply to any full surrender or partial withdrawal that exceeds the maximum penalty-free withdrawal during the guarantee period.
Depending on the direction interest rates move, the MVA may increase or decrease benefits available under the contract.
The market value adjustment does not apply to the death benefit or the guaranteed surrender value.
A surrender charge applies to withdrawal amounts that are greater than the penalty-free withdrawal limit.
Each guarantee period has its own surrender charge schedule.
The surrender charge amount is a percentage of the accumulation value and decreases over time.
If your annuity renews for a new guarantee period, the surrender charge schedule will reset and start over.
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.