Ameritas Compass Index Annuity is a flexible premium deferred indexed annuity that gives you the potential for growth without the risks associated with investing in the stock market.
The interest credited to your Compass Index Annuity is linked, in part, to the performance of the indexes you choose.
You may choose the performance of any combination of the following equity indexes:
- Capped S&P 500 Index
- Capped Russell 2000 Index
- Capped MSCI EAFE Index
Keep in mind that you’re not actually participating in the market or investing in any stock or bond.
Here’s How the Index Account Options Work:
There is a cap that limits the index rate to a maximum percentage.
The index rate can never be less than the 0% floor.
For example, assume the index for a capped index option increases 7% for a given index period, and there is a 5% cap for that index period.
The index rate would be the lesser of the 5% cap and the 7% increase, so your accumulation value would be credited with an interest equal to 5% of the accumulation value in that capped index option for this index period.
If the index had decreased during this index period, no interest would have been credited.
Protection in Down Markets
While the money built up in your policy’s accumulation value has the potential to increase depending on the interest credited, your accumulation value is guaranteed never to decrease because of market volatility or index performance.
Imagine having the safety of the principal with the opportunity to grow your money.
You can have both with an annuity that’s designed to give you the potential for growth without the risks associated with investing in the stock market.
The growth opportunity is balanced with a 0% floor, protecting your policy from negative market conditions.
We’ll help you design a balanced portfolio to withstand inflation.
Most of us can expect to live a longer, healthier life in retirement—well into our 80s and even early 90s.
That’s the good news.
But you need to have a balanced plan to live life to its fullest in retirement.
In the pre-retirement stage, equity-linked growth is key to helping assets keep up with inflation for the long haul.
An equity-indexed annuity provides the potential for cash accumulation with an interest rate linked, in part, to the performance of one or more equity indexes.
This may help manage longevity and inflation risk.
Achieve Your Goals with a Balanced Portfolio
An indexed annuity offers choices that can help you achieve a balance of upside potential and downside protection that you may need to diversify your portfolio.
You can allocate your money to one of the following:
- Fixed Account: Money in a fixed account earns a fixed interest rate.
- Index Options: Money in an index option earns an interest rate, linked, in part, to the performance of an index.
- Combination
To give your portfolio added balance, you can allocate your money to both the fixed account and the index options in any whole percentage you select.
No matter which option you select, all of your earnings will grow tax-deferred, which means you won’t pay income taxes on your earnings until you make a withdrawal.
Additional benefits of owning an annuity
Tax Deferral
Compass Index Annuity is tax-deferred. This means you do not pay taxes on interest that accumulates in your policy until you withdraw it. So the interest earned on money you would have paid in taxes each year continues to work for you.
Flexibility
Compass Index Annuity gives you a solid foundation for a retirement savings plan while giving you the flexibility to control the frequency and dollar amount of your contributions.
To purchase the annuity, you need to make initial contributions of at least $2,000 (qualified money— such as money in an IRA or employer-sponsored retirement plan) or $5,000 (nonqualified money—money deposited after taxes are taken out.)
Premiums can be allocated according to your direction and may be changed at any time.
Accessibility
Although annuities are designed as long-term investments, you may make withdrawals of up to 10% of your accumulation value each year after the first policy year without a surrender charge.
If withdrawals exceed this amount, surrender charges will apply.
Withdrawals are taken from the EDCA fixed account first, then from the fixed account, then from the index options.
Withdrawal charges will NOT apply after eight years following the policy date of the annuity.
Surrender charges may be waived in the event of terminal illness or long term confinement to a nursing home or similar facility.
Death Benefit
Compass Index Annuity provides a death benefit equal to the accumulation value.
Your beneficiary may receive this money without going through probate, thus preserving your family’s privacy and avoiding probate costs.
If your spouse is your beneficiary upon your death, he or she may choose to take ownership of your policy and continue to receive the benefits of tax deferral.
Ameritas Life Insurance is also an inexpensive way to leave a death benefit to beneficiaries.
Lifetime Income
Only an annuity can guarantee an income you can’t outlive. Compass Index Annuity offers valuable options for receiving income from your annuity, such as income for your lifetime.
Guarantees are backed by the claims-paying ability of Ameritas Life Insurance Corp.
Guaranteed Source of Income
The optional Guaranteed Lifetime Withdrawal Benefit (GLWB) rider is designed to help you protect your retirement income benefit from market downturns and potentially eliminate the risk of outliving retirement income.
With the GLWB rider, you will receive a guaranteed source of income, regardless of your accumulation value, for as long as you live.
GLWB Costs Current (and maximum) charges deducted annually as a percent of the rider charge base listed below:
- Single Life 0.75% (max. is 1.50% for most states /1.00% for MN/1.25% for DE)
- Joint Spousal 1.00% (max. is 2.00% for most states /1.50% for DE/not available in MN
