The Integrity Indextra 7 is a single premium deferred fixed indexed annuity that earns interest based on changes in a market index, which measures how markets or parts of markets perform.
Choice and Potential Come Together
Choice provides the opportunity to shape your future.
Potential offers avenues for your efforts — without being invested in the market.
Indextra gives you both choice and potential … in one insured vehicle that helps ready a path to the future.
Growth potential comes in eight interest crediting choices:
- An indexed interest option 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
- Six indexed interest options with interest determined in part by positive changes to proprietary multi-asset class indexes (and with downside protection from negative change) over the crediting period
- A fixed interest option with a declared interest rate guaranteed by Integrity Life
The Indexed Interest Options have a guaranteed interest rate that will never be less than 0%, even if the index(es) goes down.
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 change your choices if your needs change.
Note: Each version in the Indextra Series has a different set of current rates, including participation rates and interest rate caps.
Integrity Life’s Indextra is not a security.
It does not participate in the stock market or any index.
It is an insurance contract designed to help you address your long-term retirement income needs.
Consider 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 be never 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 your retirement wealth-building efforts.
The choice of interest crediting options provides an opportunity to select your allocations according to your individual needs and outlook.
One of the most valuable aspects of any annuity is its ability to provide you a guaranteed retirement income stream that can last a lifetime.
Tax Deferral Makes a Difference over Time
An annuity grows tax-deferred.
You pay no taxes on the interest credited until you make a withdrawal or distribution.
Over long periods, tax deferral can make a significant difference in a qualified retirement plan. (Tax deferral provides no added advantage to an annuity purchased through a qualified plan or IRA. )
How Your Money is Put to Work
When your Indextra contract is issued, your premium earns the guaranteed minimum interest rate (currently 1%) declared by Integrity.
On the sweep date (one to 22 days after contract issue), your account value will be allotted among the allocation options as you specified.
The first crediting periods begin on the sweep date and end after the number of index years specific to the crediting period.
The end of one crediting period marks the beginning of the next.
Any interest for the indexed interest options is credited to your account value at the end of a crediting period.
No interest is credited on amounts withdrawn before the end of a crediting period.
Integrity guarantees the indexed interest rate will never be less than 0%, even if the market index goes down.
Flexibility for Money Moves Going Forward
The choice is yours at the end of each crediting period and, for money in the fixed interest option, at the end of each index year.
You may leave your accumulated value in the same option or transfer it to one or more others.
There are no charges for transfers.
Transfers from the indexed interest options are not allowed until the end of each crediting period.
Transfers from the fixed interest option are not allowed until the end of each index year.
As you consider your allocations, keep in mind that past interest rates have no bearing on future ones.
New participation rates and, if applicable, interest rate caps for the indexed interest options are declared for each new crediting period.
A new interest rate for the fixed interest option is declared each index year.
If you transfer into an indexed interest option with a multi-year crediting period — and you already are allocated to that option — unless your current multi-year crediting period is at its end, your transferred value will fund a new multi-year crediting period with its own participation rate and, if applicable, interest rate cap.
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; $250 minimum) 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.
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.
Choose a seven- or 10-year withdrawal charge period.
Once you select your withdrawal charge option, you cannot change it.
Withdrawals with No Withdrawal Charge
In addition to the partial withdrawal provision described above, with required prior notification, withdrawals 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 Death Benefit for Your Loved Ones
Indextra 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 Integrity’s General Account assets and backed by its claims-paying ability.
Indextra 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.
Lifetime Guaranteed Payouts: Lock 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).
Payments (to a beneficiary, if necessary) are guaranteed to continue for no less than 10 years.
Additional income payment options may be available.
The decision to annuitize is permanent.
Once income payments are elected, other features of Indextra, such as account value and withdrawals, are no longer available.
Lifetime Guaranteed 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.
Guarantees of annuity payouts and lifetime withdrawals are contractual promises supported by Integrity’s General Account assets and backed by its claims-paying ability.
Confidence for the Path Ahead
You may own Indextra and depend on GLWB income for decades.
Confidence comes from knowing that contractual promises will be fulfilled for that time.
Interest rate and benefit guarantees are backed by the claims-paying ability of Integrity.
Consider the importance of ratings for financial strength, stability, and operating performance as you act to secure your retirement ambitions.
Related Reading: How to determine how much money you need to retire.