SecureLink Ultra 5 annuity from Securian Retirement combines both protection and growth potential, to help you create a more confident path to your future retirement. SecureLink Ultra 5, a 5-year fixed indexed, deferred annuity provides:
- Interest earnings that track the performance of well-known indices, plus a fixed account option.
- Protection from negative market performance, since interest credited can never be less than zero.
- Locked-in interest earnings, with the potential for continued future growth.
- A 10% Loyalty Bonus available after 10 years.
- The ability to accumulate savings faster through tax-deferred compounding.
- A death benefit for your beneficiaries.
- Income guaranteed for life, an option you can choose by annuitizing your contract.
- Rate banding for larger contracts.
The SecureLink Ultra 5 annuity is available to anyone age 85 or younger. The minimum purchase payment is $20,000, and the maximum is $2 million.
How does SecureLink Ultra 5 work?
SecureLink Ultra 5 offers the opportunity to earn interest that’s linked to the changes in the performance of an index.
By tracking the performance of an index in order to earn interest, you’re in a position to potentially earn higher interest than you would with many fixed-interest products.
Remember, you are not investing in the stock market.
Your purchase payments can be placed in up to six indexed account options that offer different ways to earn interest.
At the end of each designated crediting period, your account may receive interest in the form of an Index Credit based on how well that account’s index performed.
Each year’s earnings, if any, are locked in – no matter how each index performs in the future.
Protection when it matters
If the indices experience a negative performance, you’re protected.
That’s because the interest you’re credited will never be less than zero.
Any interest earnings applied to your SecureLink Ultra 5 annuity are locked in – no matter what changes you make in the years to follow.
And those earnings have the potential for continued future growth.
Selecting your account options
SecureLink Ultra 5 offers six different indexed account options, plus a fixed account. You may allocate your purchase payment in any way you choose among these account options.
Indexed accounts Crediting methods
- Barclays All Caps Trailblazer 5 Index 1-Year Point-to-Point with Participation Rate
- MSCI EAFE Index 1-Year Point-to-Point with Cap
- S&P 500 Index 1-Year Point-to-Point with Cap
- S&P 500 Index 1-Year Point-to-Point with Participation Rate
- S&P 500 Index 1-Year Performance Trigger
- S&P 500 Index 1-Year Inverse Performance Trigger
Fixed Account
You may also choose to have some of your purchase payment allocated to the Fixed Account, which is not linked to an index. This account provides the opportunity for your money to grow daily at a steady fixed interest rate.
Flexibility to make changes
If your financial needs change, or you’d simply like to allocate your money differently, you have the flexibility to make account transfers. You may change your allocation at the end of each account’s crediting period.
Rate banding
With Securian Financial’s SecureLink Ultra, a larger purchase payment may be eligible for higher crediting rates.
A closer look at crediting methods
1-Year Point-to-Point with Cap
Your account tracks the performance of one of the available indexes. On each contract anniversary, the performance of the index is evaluated.
If the index experienced positive growth during the last crediting period, you will be credited interest at the growth rate of the index, subject to the declared Index Cap for the year.
If the performance is negative, you will receive no Index Credit.
Highlights:
- Potential for better returns during periods of modest index growth.
- You cannot lose money if the index performs poorly. The worst you can do is earn 0% for a given year.
1-Year Point-to-Point with Participation Rate
Your account tracks the performance of one of the indexes available with this option.
On each contract anniversary, the performance of the index is evaluated.
If the index experienced positive growth during the last crediting period, you will be credited interest based on the declared Participation Rate for the year (a percentage of the total growth of the index).
If the performance is negative, you will receive no Index Credit.
Highlights:
- Potential for better returns during periods of strong index growth.
- With no cap, there is a higher potential for the interest amount you can earn.
- You cannot lose money if the index performs poorly. The worst you can do is earn 0% for a given year.
1-Year Performance Trigger
Your account tracks the performance of the index available with this option.
On each contract anniversary, the performance of the index is evaluated.
If the index remained the same or experienced positive growth during the last crediting period, you will be credited interest at the declared Trigger Rate for the year, regardless of the growth rate of the index.
If the performance is negative, you will receive no Index Credit.
Highlights:
- Potential to earn interest at a rate greater than the growth rate of the index.
- You cannot lose money if the index performs poorly. The worst you can do is earn 0% for a given year.
1-Year Inverse Performance Trigger
This option works opposite to the 1-Year Performance Trigger.
Your account tracks the performance of the index available with this option.
On each contract anniversary, the performance of the index is evaluated.
If the index experienced negative performance during the last crediting period, you will be credited positive interest at the declared Trigger Rate for the year. Keep in mind, if the performance is zero or positive, you will receive no Index Credit.
Highlights:
- Ability to earn interest when markets are down.
- You cannot lose money from index performance. The worst you can do is earn 0% for a given year
A 10% Loyalty Bonus after 10 years
As a reward for sticking with your long-term goals, SecureLink Ultra 5 also offers a one-time Loyalty Bonus. On your 10th contract anniversary, no matter how your indexed accounts have performed, a bonus equal to 7% (Ultra 7) or 10% (Ultra 5) of your Purchase Payment (reduced dollar-for-dollar for withdrawals) will be credited to your contract value. The bonus will be allocated among your accounts proportionally. Now that’s rewarding!
*Loyalty bonus not available in California.
Tax deferral improves your long-term earnings
The interest you earn remains in your SecureLink Ultra annuity and has the potential to continue growing on a tax-deferred basis. Because you don’t pay taxes until you make withdrawals, those locked-in earnings can help your savings accumulate faster. Then when you’re ready, you control when you take withdrawals and pay taxes.
Access to your money
Flexible withdrawals in an annuity may be hard to come by, but with SecureLink Ultra 5, you can access a portion of your annuity’s value without the contract penalty. The minimum withdrawal amount is $250.
Free withdrawal amount
You may access up to 10% of your annuity’s contract value as of the prior contract anniversary (in the first contract year, 10% of your purchase payment) without incurring a surrender charge or Market Value Adjustment.
If you need to withdraw more than 10%, there is a surrender charge and the possibility of a Market Value Adjustment during the first seven years.
RMD Friendly
If you’re 73 or older, you may withdraw any additional amount needed to meet the IRS Required Minimum Distribution (RMD) from this contract for that year.
Keep in mind that withdrawals prior to age 59½ may be subject to a 10% federal tax penalty.
Surrender charge on withdrawal
The following charge applies to withdrawals above the free withdrawal amount (or RMD if applicable).
The charge is a percentage of the additional amount withdrawn.
Remember, the free withdrawal amount is not available upon full contract surrender during the first five contract years.
You may access your entire contract value after the fifth contract anniversary without any charges.
A surrender charge would result in a reduction to the amount you receive upon withdrawal or surrender in the early years of the contract.
The surrender charge is waived if you decide to annuitize and receive regular income payments from your annuity, or if you die.
The surrender charge is also waived upon withdrawal or surrender during a qualifying nursing home stay or terminal condition of the owner or joint owner.
There is a one-year waiting period following any change of ownership during which these waiver provisions do not apply.
Keep in mind that all withdrawals reduce the contract, surrender, and death benefit values.
Market Value Adjustment (MVA)
During the first five years of your contract, a Market Value Adjustment (MVA) may be applied to amounts surrendered or withdrawn in excess of the free withdrawal amount.
The purpose of the MVA is to reflect changes in market rates that have occurred since the contract issued.
The MVA can either increase or decrease the amount withdrawn from the annuity’s value.
Generally, if market conditions have decreased, the MVA will be positive, and if market conditions have increased, the MVA will be negative.
Please note that surrender charges may also apply.
The Market Value Adjustment feature may not be applicable in all states.
A negative MVA will never cause the amount you receive to be less than the Guaranteed Minimum Surrender Value (GMSV), and a positive MVA will never exceed the amount of Surrender Charge assessed on the withdrawal or surrender.
In addition, any limitation will apply in both the positive and negative direction.
Guaranteed Minimum Surrender Value
If you decide to surrender your SecureLink Ultra 5 annuity contract, you have another layer of protection with the Guaranteed Minimum Surrender Value.
It’s equal to 91% of your purchase payment, accumulated at the Guaranteed Minimum Surrender Value interest rates, and adjusted for amounts withdrawn.
The interest rates are between 1-3% and are guaranteed for the life of your contract.
The value available at surrender will be the greater of your contract value – adjusted by any surrender charges and/or MVA – or the Guaranteed Minimum Surrender Value.
Protection for your loved ones SecureLink Ultra 5 provides additional protection for you and your loved ones.
If you die prior to annuitizing your contract, your beneficiary will receive the greater of the contract value or the Guaranteed Minimum Surrender Value.
Minnesota Life Insurance is also an inexpensive way to leave a death benefit to beneficiaries.
Create a guaranteed stream of income
An advantage annuities offer over other fixed products is the ability to annuitize or turn your assets into a guaranteed stream of income that lasts a lifetime.
Payments are guaranteed by the financial strength and claims-paying ability of Minnesota Life.
Your contract will generally annuitize at the earlier of the date that you elect or the contract’s maturity date at age 95.
Keep in mind, the payout choice you select is final and usually can’t be changed. So make sure you understand your choices and the option that will work best for you.
INCOME PAYMENT OPTIONS INCLUDE:
- Income-based on one life A variety of income options that provide income for you or you and your beneficiaries
- Income-based on two lives A variety of income options for you and your spouse or another individual.
