Consider a path for future wealth building backed by the assurance of solid protection. Consider Advantage. A single premium deferred fixed indexed annuity issued and guaranteed by Columbus Life, Advantage earns interest based on changes in a stock market index, which measures how the market or part of the market performs.
Choice and Potential Come Together
Advantage provides both choice and potential … in one contract that helps ready a path to the future. Having choices provides the opportunity to shape your future. Potential offers avenues for the efforts — without the uncertainty of being invested in the market.
Growth Potential with Six Allocation Options
Two indexed interest options with interest determined in part by a positive change in the S&P 500® Index (and with downside protection from negative change) over the crediting period.
- The indexed interest options have a guaranteed interest rate that will never be less than 0%, even if the market goes down.
- Three indexed interest options with interest determined in part by a positive change in a proprietary multi-asset-class index (and with downside protection from negative change) over the crediting period.
- A fixed interest option with a declared interest rate guaranteed by Columbus Life.
- Research average annuity rates to find the best retirement plan for you.
Allocate your premium among all these choices, or among a few, or to just one.
It’s up to you.
Going forward, you will have opportunities at specific times to adjust your choices if your needs change.
Considering a Fixed Indexed Annuity?
Given the ongoing market volatility and low fixed interest rates of recent years, many Americans share growing concern over those financial risks and the threat they pose to retirement security.
A fixed indexed annuity is a tax-deferred insurance product.
It is designed both to protect its accumulated account value from losses due to negative changes in the market indexes associated with the annuity as well as to guarantee a lifetime income.
For upside potential with downside protection, indexed interest options offer:
- Opportunity — interest rates based in part on positive changes in market indexes.
- Certainty — interest rates guaranteed to never be less than zero, even if the market indexes go down.
- Security — a guarantee that once interest is credited, it can never be lost due to declines in the market indexes associated with the annuity.
The guarantees in a fixed indexed annuity may serve as a buffer against potential losses in other areas of retirement wealth-building efforts.
The choice of interest crediting options provides an opportunity to select allocations according to individual needs and outlook.
One of the most valuable aspects of any annuity is its ability to provide a guaranteed retirement income stream that can last a lifetime.
Related Reading: How much money will I need to retire?
Partial Withdrawals with No Withdrawal Charge
Annuities are designed for long-term accumulation and retirement funding.
Still, for financial flexibility, some liquidity is available while withdrawal charges apply.
You may withdraw up to 10% of your beginning of the year account value (noncumulative) each index year without a withdrawal charge.
Withdrawals of taxable amounts will be subject to ordinary income tax and, before age 59½, generally will be subject to a 10% IRS penalty tax.
There is a $250 partial withdrawal minimum.
Amounts withdrawn from indexed interest options before the end of a crediting period receive no interest for that crediting period.
Declining Withdrawal Charge
A withdrawal charge applies only to amounts in excess of the free withdrawal amount and decreases over time.
Advantage offers the choice of a seven-year withdrawal charge period.
Availability of both may be Accessibility
Withdrawals with No Withdrawal Charge
In addition to the previously described partial withdrawal provision, withdrawals, with required prior notification, may be free of charge for the following reasons:
- Limited life expectancy.
- Confinement to a nursing home, hospital, or licensed health care facility.
- Required minimum distributions (RMDs).
- Full annuitization
Guaranteed Minimum Account Value (GMAV) Benefit
Both withdrawal charge periods provide an associated guaranteed minimum account value benefit.
At the end of the index year immediately following your withdrawal charge period, Columbus Life will review your account value.
If it is less than the enhanced value calculated by the formula below, Columbus Life will increase it to equal that enhanced value.
The benefit applies one time only.
Any increase goes to the fixed interest option.
The GMAV is your initial premium, less voluntary reductions, withdrawal charges, and rider charges (if applicable), multiplied by the applicable guaranteed enhancement percentage.
The account value still may fall below the GMAV in subsequent years if the interest credited is less than the charges taken for any optional riders.
Guaranteed Death Benefit
Advantage provides for your beneficiaries if you, as the owner, die while an account value remains.
Your named beneficiary will receive the greater of your account value or your nonforfeiture value as of the date the death benefit is processed.
Regardless, no withdrawal charge applies.
Guarantees of account values and death benefits are contractual promises supported by Columbus Life’s general account assets and backed by its claims-paying ability.
Advantage Provides Choices for the Future The income options detailed below can be based on the lives of both you and your spouse (if you choose the spousal benefit). Doing so provides an extra measure of protection as a surviving spouse can be confident of a continued income stream.
Guaranteed Lifetime Payouts: Locking in Steady Income
Anytime after your second contract year (first contract year in Florida), you may take your contract value as a series of lifetime guaranteed payouts.
The contract value must be taken by the contract maturity date, which is set at the annuitant’s 100th birthday when the contract is issued.
When you’re ready to take your income (annuitize), choose scheduled income payments guaranteed to continue for a lifetime — either single (one life) or joint (two lives).
The decision to annuitize is permanent.
Payments (to a beneficiary, if necessary) are guaranteed to continue for no less than ten years.
Additional income payment options may be available.
Once income payments are elected, other features of Advantage, such as account value and withdrawals, are no longer available.
Guaranteed Lifetime Withdrawals: Generate Income and Maintain Growth Potential
The Guaranteed Lifetime Withdrawal Benefit (GLWB) is an optional benefit available at issue for an additional charge, provided you (and your covered spouse, if you elect spousal coverage) are age 45–80.
It guarantees withdrawals for the life of the covered person or persons (owner and spouse if the spousal GLWB is elected) — regardless of the account value — provided voluntary reductions are limited to the annual lifetime payout amount (LPA).
The annual charge is 0.95% (1.50% maximum) of the benefit base for either the individual or the spousal benefit.
While the charge is the same for the spousal benefit (for both spouses), the LPA is 90% of that for the individual benefit.
As you consider the benefit, note that:
- Benefit withdrawals can begin on the first day of the first index year following the 60th birthday of the younger covered person.
- Nonguaranteed voluntary reductions (those taken before the eligibility date or for more than the eligible amount) reduce the value of the benefit and may even cause it to terminate.
- Utilize an annuity payout calculator to compare income rates.