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A Sneak Peek into Our Annuity Products

A Sneak Peek into Our Annuity Products

A Sneak Peek into Our Annuity Products

In a volatile economic environment, fixed annuities are a great way to protect your income while still growing your wealth. We wanted to highlight two of the Annuity Products that we offer through one of our carriers, Auto-Owners Insurance.

Discount: With the purchase of an annuity, an insured gets up to a 5% discount on Auto and Homeowners policies with Auto-Owners insurance.

Background: The Item 500 and Item 501 are classified as deferred annuities. Deferred annuities accumulate interest for a period of time before being withdrawn after a certain time period. If withdrawn early, these products are subject to a surrender charge. In addition, contrary to other products on the market, Auto-Owners does not have any admin fees or service charges. Therefore, if you invest $50,000 in an annuity, all $50,000 is going into the product.

Item 500: The Item 500 Annuity has a fluctuating interest rate based on their portfolio performance. Withdrawals can be made at any time but may be subject to a surrender charge. The surrender charge is 10% in the first year and decreases by 1% each year. In addition, any deposits made after the original contract date will not start a new surrender charge period. The interest rate can fluctuate during the contract period; however, never below the contractual minimum guaranteed interest rate, which currently is 1.15%. The current credited interest rate for the Item 500 product being offered by Auto-Owners is 1.75%

Item 501: This product offers a guaranteed interest rate for up to six years. The product relies on a RENEWABLE accumulation period (RAP). When an annuity is issued, the first deposit is guaranteed the current declared interest rate for the 6-year RAP. This interest rate compounds over the lifetime of the annuity. The surrender charge (taking money out before the RAP is over) is 10%. Thirty days prior to the completion of the RAP, funds may be withdrawn without being subject to a surrender charge. If an individual chooses to keep money in the annuity, then a new interest rate would be declared, and the RAP would restart subject to the 10% surrender penalty. During the RAP period, an individual can add more funds and they would be subject to the current interest rate at that date. The current credited interest rate for this product is 3.25%!

For more information on our Annuity or Life Insurance products call our office today at 727-323-0206!