This is a sample of what an annuity quote looks like from a 24 year veteran of the annuity services industry. There are 8 types of annuity benefits available. You choose the type(s) you like. A Safe Money Singer Annuity Quotation might be the most thorough annuity quote to be found on the internet!
ANNUITY
One of the most important decisions that you can make regarding your retirement is
selecting the right type of product that gives you the peace of mind of knowing that your hard-earned savings is there when you need it. For many, one of the building blocks of their retirement foundation is a tax-deferred annuity.
When it is time to start planning for retirement, selecting a financial plan that works best involves assessing your goals, time horizon and risk tolerance. Using a single premium deferred annuity inside a financial plan can provide a solid foundation. A single initial premium earns a fixed rate of interest thus allowing your money to grow on a tax-deferred basis until you decide to begin receiving annuity payments. The CL Sundance Annuity offers a 2-, 3-, or 5-year interest rate guarantee period designed to align with the specific needs of your financial plan.
WHY?
The ability to defer paying taxes until a later date is a major factor. When given an equal interest rate, money will grow faster when taxes are deferred when compared to paying taxes on earnings every year.
MORE ADVANTAGES Besides the tax-deferred
benefits, fixed annuities offer many other advantages such as:
STABILITY of realized growth each year (power of compounding upon itself).
MAY AVOID PROBATE because you name your beneficiaries.
LIQUIDITY FEATURES that provide access to funds when needed.
GUARANTEED INCOME that will ensure that you will never run out of money. NO RISK TO YOUR PRINCIPAL , no market fluctuations. 100% of your money is working for you.
THE POWER OF TAX-DEFERRAL
Tax-deferred growth allows your money to grow faster because you earn interest on dollars that would otherwise be immediately taxable. Paying taxes on gains each year will reduce the amount of funds available for growth and compounding. With a Tax-Deferred annuity your earnings will accumulate on both your principal and interest which results in greater value buildup over time. Income taxes are deferred until funds are withdrawn from the contract. The chart below shows the taxable yield needed to be equivalent to the tax deferred yield, otherwise known as the Tax Equivalent Yield. In this example, an initial premium is shown growing over a 20-year period using a 3.00% interest rate. This compares the difference in growth of a tax-deferred growth to a taxable growth, assuming no withdrawals are taken. Paying taxes on gains each year will reduce the amount of funds available for growth and compounding. With a Tax-Deferred investment your earnings will accumulate on both your principal and interest which results in greater accumulation over time.
This chart is for illustrative purposes only. It is not an indication of performance of any specific product or investment.
LIFETIME INCOME OPTION(S) A valuable feature of annuity contracts is the ability to create a life-long paycheck to yourself. Providing you with an option for certain income payments that you cannot outlive, CL Life and Annuity offers you a guaranteed income stream with the purchase of your tax-deferred annuity, through the ability to annuitize, which turns the deferred account into a regular stream of payments. You will have the ability to choose when to start the income stream and you have several different annuity payout options that may meet your future income needs; to include a payout for a certain period of time, for your entire lifetime with a guaranteed period. MAY AVOID PROBATE You have the ability to name a beneficiary(s) (other than your estate). Your deferred annuity will be paid directly to any such named beneficiary, thereby avoiding inclusion in a probated estate. This benefit may minimize the delays, expenses and publicity often associated with probate. Your designated beneficiary can then choose how they receive death proceeds based on their personal financial situation. SURRENDER CHARGES A surrender charge applies to withdrawal amounts that are greater than the penalty-free withdrawal amount. Each guarantee period has its own surrender charge schedule. The amount of the surrender charge is a percentage of your account value, which decreases over time as shown in the chart below. If you renew into a new guarantee period, surrender charges will reset. Withdrawals before age 591 ⁄2 may be subject to a 10% IRS penalty tax. See your agent or your legal or tax advisor for complete details.
Surrender Charge Percentage
Term
1
2
3
4
5
6
7
2-Year 3-year 5-year 7-year
9% 8%
9% 8% 7%
9% 8% 7% 6% 5%
9% 8% 7% 6% 5% 4%
3 %
MARKET VALUE ADJUSTMENT A Market Value Adjustment (MVA) will only be applied any time a surrender charge is incurred. The MVA does not apply to the penalty-free withdraws. The purpose of the MVA is, in case of an early withdrawal, to adjust the value of your funds for the change in interest rates. The change is measured by comparing the base interest rate credited in your contract, with the base interest rates being credited by the company on current sales of the same contract form. The MVA does not apply to penalty-free withdrawals, to the payment of a death benefit or at the end of the guarantee period. At time of withdrawal or surrender, the MVA will reduce the surrender amount when the interest rates for new contracts is greater than the current crediting rate of your contract less .25%. Oppositely, the MVA will increase the surrender value when the interest rate for new contracts is less than the current rate credited to your contract less .25%. Please refer to the section of the contract for the MVA provision. This only applies to withdrawals that exceed the penalty-free withdrawal amount during a guarantee period. PENALTY-FREE WITHDRAWALS CL Sundance Annuity 3- and 5-year allows accumulated interest to be withdrawn monthly, quarterly, semiannually and annually. Maximum withdrawal is the prior 12 months of earned interest or the Required Minimum Distribution (RMD), whichever is greater. A penalty-free withdrawal waives any surrender charges or market value adjustment on the withdrawn amount. Amounts withdrawn in excess of the prior 12 months of interest credits penalty- free amount will incur these charges, if applicable. Starting year two of your annuity policty, surrender charges will be waived on Internal Revenue Service (IRS) required minimum distributions (RMD) exceeding the penalty-free withdrawal amount.
RENEWAL PROCESS You will have the option to elect to renew your annuity for another guaranteed interest rate term period. Depending on your situation and financial goals at that time, this renewal option assures you of a current, competitive interest rate and an easy transition to a new guaranteed rate term period. We will contact you with your options and provide a 30-day window following the end of each guaranteed interest term period for you to make a selection. If no election is made, CL Life will automatically renew your annuity. If a withdrawal or surrender is made within this 30-day window, no surrender charges or market value adjustment will apply. After the 30-day window, a new guarantee period, guaranteed interest rate, surrender charge period and market value adjustment will be applied. Renewal rates for subsequent guarantee periods will be based on current, competitive interest rates and financial circumstances, and may differ from the initial guaranteed interest rate.
DEATH BENEFIT The named beneficiary(ies) of the CL Sundance Annuity will receive per your specified allocation on the contract, a death benefit that is equal to the account value. From the time CL Life receives the notification of the first owner’s death until the funds are distributed, the death benefit will accrue interest at a rate required by the state in which the contract is issued. Alternatively, if the contract is continued by a surviving spouse who is the sole beneficiary on the contract, the account value will continue according to the terms of the contract. Your beneficiary may choose to receive the payouts in either a lump sum or a series of income payments. In the case of joint owners, the death benefit is paid on the death of the first owner. Fixed annuities are insurance products that serve a variety of needs. They provide guaranteed growth, are not subject to market risk and can be used to ensure that you will never outlive your retirement money. These features are key components in building a retirement plan that will last a lifetime.
IMPORTANT INFORMATION This material is for informational or educational purposes only, and is not a recommendation to buy, sell, hold or rollover any asset. It does not take into account the specific financial circumstances, investment objectives, risk tolerance, or needs of any specific person. You should work with your agent to discuss your specific situation. In providing this information, CL Life and Annuity Insurance Company is not acting as your fiduciary as defined by the Department of Labor. CL Life and Annuity Insurance Company, whose office is located at 201 Main Street, Suite 1900, Fort Worth, Texas, issues the CL Sundance Annuity on form number ICC22-MYGA 1001. The CL Sundance Annuity and/or certain features may not be available in all states. Annuity contracts contain limitations. Please consult the contract for more details regarding these limitations such as, if applicable, varying surrender periods, surrender charges associated with early withdrawals and market value adjustments. Annuity contracts involve investment risk including a possible loss of value. This material is provided for clarification of benefits which may be included in the contract when it is issued. It is for informational purposes only. In the event of any ambiguity or conflict of terms between this material and the annuity contract, the terms of the annuity contract shall be controlling. Neither CL Life and Annuity Insurance Company nor its representatives provide legal or tax advice. For legal and tax advice concerning your specific situation, please consult an attorney or tax professional. Guarantees are based on the claims-paying ability of CL Life and Annuity Insurance Company. This is a solicitation for insurance. ANNUITIES ARE PRODUCTS OF THE INSURANCE INDUSTRY AND NOT GUARANTEED BY ANY BANK OR CREDIT UNION. NOT FDIC OR NCUA INSURED. MAY LOSE VALUE. NOT A BANK OR CREDIT UNION DEPOSIT OR OBLIGATION. NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY. MAY ONLY BE OFFERED BY A LICENSED INSURANCE AGENT.
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