Legacy LibertyMark 10 Plus Fixed Index Annuity from Americo offers the peace of mind that comes from strong product features. This is known as your LibertyMark 10 Plus Bill of Rights. You can sleep soundly knowing your financial future is built on a foundation of value and integrity.
You Have the Right To …
- Choose the optimal LibertyMark 10 Plus product and interest crediting strategies to meet your retirement goals.
- Access your money when you need it most—penalty-free in some situations.
- Accumulate your savings through a diverse selection of interest crediting strategies that can provide earnings in various markets.
- Protect your hard-earned money with minimum guarantees and a built-in protection feature.
- Leave a Legacy with a death benefit that may bypass the costs and delays of probate.
- Safeguard your nest egg with a stable, highly rated insurance carrier.
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About Single Premium Deferred Fixed Indexed Annuities
With single premium deferred annuities such as LibertyMark 10 Plus, you pay one lump-sum premium payment.
In exchange, you can receive a series of future payments.
Multiple payment options are available, including lifetime income options.
In contrast with life insurance, which generally provides financial protection against dying too early, LibertyMark 10 Plus Series annuities are retirement savings vehicles that can offer financial protection against living too long.
Income payments and taxes are deferred.
You won’t need to pay taxes on the interest your annuity earns until you withdraw it.
Fixed indexed annuities can guarantee you a fixed rate of interest earnings.
They also offer interest crediting strategy choices that are based on the performance of a market index.
They do this while providing protection from loss.
The Right To Choose
Everyone has a different set of goals and priorities that will help them declare their financial independence.
To respond to varying needs, the LibertyMark 10 Plus Series offers multiple product versions.
You may choose a 7- or 10-year surrender period product.
These products offer a bonus or non-bonus option.
You also have the right to choose how interest will be credited to your contract.
This is provided through a range of available interest crediting strategies.
You have flexibility and empowerment over how your retirements funds grow.
The Right To Access
LibertyMark 10 Plus is a long-term retirement product that will perform best when it is allowed to grow.
However, life is unpredictable. Circumstances may arise that require you to access your Accumulation Value.
If the unexpected happens, or you just need cash before the end of the annuity’s surrender charge period, rest assured.
LibertyMark 10 Plus offers several different liquidity options for flexible access to your money.
Each contract year after the first, you may withdraw up to 10% of your Accumulation Value without incurring surrender charges.
The minimum withdrawal amount is $500.
Your surrender value must remain at least $2,000.
Additionally, current company practice allows interest-only withdrawals from the Fixed Rate Strategy after the first month.
If you choose to surrender the contract or make a withdrawal that exceeds the penalty-free withdrawal amount, a surrender charge may apply during the contract’s surrender period.
The charge is a percentage of the amount withdrawn.
Surrender charges vary by product version.
For details about surrender charges applicable to your specific LibertyMark 10 Plus product, refer to the appropriate product insert.
In most states, if after the contract date you become confined to a nursing home or hospital for at least 90 consecutive days, you may withdraw up to 100% of your Accumulation Value without incurring surrender charges.
This is available under the Waiver of Surrender Charges Upon Nursing Home or Hospital Confinement Endorsement (Endorsement Series 4139).
Your withdrawal request and proof of confinement must be provided no later than 30 days after discharge. Check with your insurance professional regarding the availability of this waiver in your state (it is not available in Massachusetts).
You may convert your surrender value into regular monthly payments at any time.
This is a process known as annuitization.
Surrender charges are waived if the contract has been in force for at least five years.
Multiple payout options are available to choose from.
These include lifetime income options and a fixed period option that pays out for at least 60 months or the annuitant’s life expectancy if shorter.
Required Minimum Distributions
If your annuity was issued in connection with a tax-qualified plan, the IRS may require you to take minimum distributions beginning at age 73.
Required minimum distribution amounts associated with this contract that are greater than the penalty-free amount may be withdrawn without surrender charges.
This is available by current company practice beginning in the first contract year.
If you have a 403(b)/TSA plan, you may take loans of at least 0.
The loan balance will be credited with interest according to index increases.
Loan amounts will be charged a fixed rate of interest.
This interest rate is determined at the time the loan is taken and set for the life of the loan. Refer to the contract for additional details.
Any withdrawals taken will be deducted first from the Fixed Rate Strategy.
Then additional amounts will be taken from the indexed strategies.
The Right To Accumulate
Retirement wealth accumulation is the primary reason for purchasing an annuity.
So choose a product that has high earnings potential in various markets.
LibertyMark 10 Plus delivers a diverse range of interest crediting strategies.
LibertyMark 10 Plus offers a broad range of indexed strategies that credit interest based on the performance of a specific market index.
By allocating your money to an index option, you have the opportunity to benefit from market gains without exposing your money to market declines.
Indexed interest, if any, is credited at the end of each strategy term period.
Depending on the indexed strategy you select, interest crediting is determined, in part, by one or more of these factors:
- Cap—a maximum rate of interest.
- Participation Rate—a percentage of index gain during the index period.
- Fixed-Rate on Gain—an interest rate that applies each year on the index date anniversary if the index value increases over the beginning index value.
Regardless of which strategy or combination of strategies you choose, your money is protected from market uncertainty.
This is because interest credited will never be less than 0%.
For descriptions of available indexed strategies and interest crediting details, refer to the LibertyMark 10 Plus Interest Crediting Strategies brochure.
This interest crediting strategy guarantees a competitive fixed rate of interest for a 12-month period.
Interest is credited daily rather than at the end of the term period.
This makes the Fixed Rate Strategy a great selection if you anticipate needing to take withdrawals.
You may allocate premiums among any or all of the available strategies.
You may also transfer all or a portion of your money into another strategy at the end of each term period.
By current company practice, you have 14 days after the end of the term period to request any transfers.
We will remind you 45 days prior to the index anniversary.
The minimum transfer amount is $50. Each strategy elected must have at least $50 remaining after transfer.
The Right To Protect
To shield your retirement funds from market-related losses, LibertyMark 10 Plus has a built-in minimum guarantee.
This offers the security of principal regardless of market conditions.
Upon full surrender, death, or annuitization, you are guaranteed to receive between 1% and 3% on the entirety of your premium (less any withdrawals, surrender charges, and applicable premium tax).
Your guaranteed minimum interest rate is set when the contract is issued.
The Liberty Optimizer Fee is not deducted from the Guaranteed Minimum Value” href=”https://www.annuityexpertadvice.com/annuity-101/annuity-values/”>Guaranteed Minimum Value.
Liberty Optimizer Fee
LibertyMark 10 Plus provides you access to a diverse range of crediting strategies, outstanding growth potential in varying markets, and strong product guarantees.
To make these desirable features available, an administrative fee called the Liberty Optimizer Fee will be applied at the end of each contract year, including the first.
The Liberty Optimizer Fee is a deduction from the Accumulation Value.
It is set at contract issue and will not change for the life of the contract.
Fees range from 1.00% to 1.75%, depending on the product version selected.
For the Liberty Optimizer Fee applicable to your LibertyMark 10 Plus product choice, refer to the appropriate product insert.
To protect your premium from declines due to the Liberty Optimizer Fee, the LibertyMark 10 Plus True-Up benefit is designed to credit back Liberty Optimizer Fee amounts paid that are greater than your interest earnings.
True Up applies at the end of Year 5 if your Accumulation Value is less than the premium paid into the contract, less withdrawals (and surrender charges thereon), and Heritage Maximizer rider charges, if applicable.
It’s calculated after the Year 5 Liberty Optimizer Fee is deducted, and any interest is credited.
The Right To Leave a Legacy
Should you die before annuity payments begin, the annuity’s Death Benefit will be the greater of the Accumulation Value, the Guaranteed Minimum Value, or Return of Premium less prior gross withdrawals.
The value used is decreased by any applicable premium taxes.
Proceeds are paid directly to the chosen beneficiary.
Death benefit proceeds are also generally free from the hassles, publicity, and delays of probate.
You can increase the amount your beneficiary receives by electing the Heritage Maximizer enhanced death benefit rider when you purchase your annuity.
The rider, available with certain LibertyMark 10 Plus annuities for an additional charge, provides a death benefit that is 130% of your Accumulation Value.
For important details about Heritage Maximizer, refer to the accompanying insert.
If you die before the end of an index term, the death benefit under both the rider and contract will include any partial-year index credits.
This is important because it means that your beneficiaries will not miss out on index growth occurring after the previous contract anniversary.
Life Insurance is also an inexpensive way to leave a death benefit for beneficiaries, tax-free.
The Right To Safeguard
To safeguard your nest egg, you want a product offered by an insurer built on a platform of integrity and security.
Your LibertyMark 10 Plus contract is issued by Americo Financial Life and Annuity Insurance Company, which has received an excellent rating from an independent ratings agency.
For more than 100 years, Americo Life, Inc.’s family of insurance companies has been committed to providing the life insurance and annuity products you need to protect your mortgage, family, and future.
We listen to what you want from a life insurance policy or annuity contract and do our best to provide a proper solution for your individual situation.
Innovative thinking and sound investment decisions have helped us build a strong financial foundation for our business.
- Rider Election: The Heritage Maximizer is available for a jointly owned contract if the owner and joint owner are spouses or for a single owned contract.
- Covered Life: A Covered Life is any owner that is a natural person. Except when a surviving spouse continues the rider (see “Spousal Continuation”), this Covered Life designation cannot change after the contract date.
- Age Limit: A Covered Life may not be older than 75 at contract issue.
- Waiting Period: The Heritage Maximizer benefit becomes eligible for payout three years after the rider effective date.
- Cancellation: The rider cannot be canceled after it’s elected.
How the Rider Works
Enhanced Death Benefit Amount:
The amount payable upon the death of a Covered Life is the greatest of:
- Accumulation Value multiplied by 130% (referred to as the EDB Percentage), less any applicable premium tax.
- Return of Premium less prior gross withdrawals.
- Guaranteed Minimum Value.
After the three-year waiting period, if a Covered Life dies while the rider is in effect and before the contract is annuitized, the enhanced death benefit will be paid instead of the death benefit provided under the contract.
The date of benefits eligibility is referred to as the EDB Date.
As a fee for the Heritage Maximizer, 0.30% of the annuity’s Accumulation Value is deducted annually at the end of each contract year, including the first.
This percentage, called the EDB Rider Fee Percentage, is set at issue and cannot change during the life of the contract.
Assuming the Heritage Maximizer is still in effect, a surviving spouse who continues the contract following the joint owner’s death may continue the rider if:
- The surviving spouse was a joint owner or sole beneficiary of the contract prior to the death.
- The surviving spouse is not older than 75 on the date of contract continuation.
- The continuation is elected at the time the spouse elects to continue the contract.
- The continuation of the contract was not previously exercised by the spouse of an owner.
- The continuation request is made in good order.
The rider will terminate when the first of these events occurs (once terminated, the rider cannot be reinstated):
- The enhanced death benefit is paid.
- The death benefit under the contract is paid upon the death of a joint owner who is not a Covered Life.
- The surviving spouse of a Covered Life does not continue the rider or does not meet spousal continuation requirements.
- The contract is surrendered or otherwise terminated.
- The entire contract is annuitized.
- An owner who is not the spouse of an owner is added or replaced.
- The contract is transferred or assigned (unless the assignment is used to effectuate a 1035 Exchange of the contract, in which case the rider will not be terminated until the contract is surrendered).
- An annuitant attains the maximum annuitization age provided by the contract.