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!
Highlander ® Fixed Indexed Annuity
The Highlander ® is a single premium deferred fixed indexed annuity that allows you to accumulate funds, benefit from tax deferral, maintain a simplified allocation, and can provide a living benefit of income that can last as long as you live.
Whether you have thought about it yet or not, life in retirement has a new set of financial risks that may keep you from enjoying your time the way you had always dreamed. That’s where we come in and offer peace of mind by:
• Limiting the risk of market fluctuation
• Helping you avoid poor market timing
• Providing guaranteed income for the rest of your life ¹
• Better potential to keep pace with inflation
Annuities are an important tool in planning and sustaining income for the future. Deferred annuities accumulate money tax-free for a period of time. Your premium will receive earned interest as well as enjoying income tax deferral, which results in a secure and dependable account balance.
Immediate annuities provide a reliable and predictable income that you cannot outlive. Clear Spring Life and Annuity Company (”Clear Spring Life”) offers these tools with your future in mind.
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Highlander ® Fixed Index Annuity
Clear Spring Life and Annuity Company
Meet John and Annie
For the past 25 years, John has been working as a manager of a staffing firm and Annie as a registered nurse at the local hospital. After raising two children and seeing them graduate college, it’s time they start thinking about their future.
Annie became concerned after speaking with a co-worker at his retirement party when he said, “I just hope I have enough money to get through the rest of my life.” It was this uncertainty that made Annie worried about her and John’s retirement, so they met with their financial advisor. John and Annie, both 55 years old, wanted to make sure they started planning before it got too late to make an impact on their retirement.
After evaluating John and Annie’s goals, their advisor knew the Highlander ® Fixed Indexed Annuity from Clear Spring Life and Annuity would address their concerns. Let’s take a look at how selecting the Highlander ® can start to put these retirement worries behind them.
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Highlander ® Fixed Index Annuity
Clear Spring Life and Annuity Company
The Risk Market Fluctuation
The Risk Sequence of Returns
There is another risk that many people, including John and Annie, weren’t aware of until they sat down with their advisor or agent. The risk is negative returns early in retirement and how they can drastically affect the entire retirement picture. The reason many aren’t aware of this risk is because it isn’t a factor during the accumulation years. Luckily for them, the Highlander ® Fixed Indexed Annuity prevents any negative account balance movement due to market losses. In fixed indexed annuities...zero is definitely your hero.
John remembers his accounts taking a sizable hit during the last recession and knows they were lucky to have the time to regrow their assets to their previous values. However, for John and Annie, time is no longer on their side. A big loss in their assets could mean rethinking retirement or putting it off all together! The Highlander ® offers exactly what John and Annie need to meet their retirement objectives: the potential to capitalize on a portion of the S&P 500 Index if it grows during the contract year, and the protection of not losing any of their account balance if the index should incur a loss in the contract year.
This is accomplished by the use of an index “Cap” strategy. Simply put, John and Annie will receive 100% of the index’s gains up to the designated cap rate for the contract year. If and when the index has a negative year, they will maintain the same account balance minus any rider fees associated with the contract.
We can see how this all changes in these two hypothetical examples. The examples start with $250,000.
Sequence of Returns During Accumulation Phase Hypothetical Annual Returns Hypothetical Account Value
Reversed Hypothetical Annual Returns
Reversed Hypothetical Account Value
17.31% 9.24% 5.20%
$293,275 $320,374 $337,033 $385,397 $433,456 $362,630
-9.17%
$227,075 $196,034 $198,876 $182,032 $152,288
-13.67%
1.45%
14.35% 12.47% -16.34%
-8.47%
-16.34% 12.47% 14.35%
$171,278
-8.47%
$331,915
$195,856 $206,041 $225,079 $264,040
Negative Market Sample
Positive Market Sample
1.45%
$336,728 $290,697 $264,040
5.20% 9.24% 17.31%
-13.67%
-9.17%
Sequence of Returns During Distribution Phase Hypothetical Annual Returns Hypothetical Account Value Withdrawal of $15,000 per Year
Reversed Hypothetical Annual Returns
Reversed Hypothetical Account Value
17.31% 9.24% 5.20%
$278,275
$15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
-9.17%
$212,075
$288,988 $289,015 $315,489 $339,830 $269,302 $231,492 $219,849 $174,795 $143,767
-13.67%
$168,084 $155,522 $127,349 $91,540 $87,955 $85,577 $75,027 $66,959 $63,550
1.45%
14.35% 12.47% -16.34%
-8.47%
-16.34% 12.47% 14.35%
-8.47%
1.45%
5.20% 9.24% 17.31%
Account Balance
Cap Rate
-13.67%
-9.17%
These two hypothetical examples illustrate sequence of returns and do not represent the past or future performance of any product. Actual results will vary.
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Highlander ® Fixed Index Annuity
Clear Spring Life and Annuity Company
The Risk Outliving Your Money
The Risk Inflation
Now that John and Annie feel a little more confident in their retirement knowing there is a product that allows them to receive a portion of the market gains with protection against losses, Annie brings up another worry of hers… longevity. It is now common to live up to 25 years in retirement and, for many, even longer! Annie is concerned that they will outlive their money. The
Highlander ® has a Lifetime Withdrawal Rider that may be exactly what they are looking for to keep them from outliving their nest egg. The Lifetime Withdrawal Rider is an optional benefit with the Highlander ® at an additional cost. The rider guarantees you can withdraw a minimum amount of income from your annuity each year as long as you live.
The Highlander’s Lifetime Withdrawal Rider provides
John mentions, during the conversation with their financial advisor that the Highlander ® sounds like a good fit, but he’s still contemplating other alternatives that are low risk and low return options. The main issue with holding assets in cash is the risk of inflation over time. Effectively, what once bought two candy bars now may only be enough to afford one. Candy bars may not
be a major concern, but having enough income in retirement sure is for John and Annie. Thankfully, with the Highlander ® , not only does their income never decrease if they don’t take any excess withdrawals, it has the opportunity to increase over time. Let’s take a look at how an investment in the S&P 500 with a “Cap Rate” has compared to the historical U.S. inflation rate over the past 30 years.
The Highlander’s Lifetime Withdrawal Rider provides income protection and growth opportunities.
income protection and growth opportunities along with the security of knowing your income is guaranteed to last a lifetime.
Hypothetical Index Credit
S&P 500 Index with Cap vs. U.S. Inflation Rate
Benefit Base $142,142
$142,142
300,000
Index Credit +4%
$136,675
Index Credit +4%
250,000
$127,259
Index Credit +4%
$117,832 Index Credit +4%
200,000
$100,000 Initial Premium $105,000 After 10% Benefit Base Bonus
$118,727
Account Value $117,659
150,000
$115,721
$117,659
100,000
$112,280
$100,000 Initial Premium $110,000 After 10% Bonus
50,000
1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Year 1 3.00%
Year 2 4.00%
Year 3 3.53%
Year 4 0.00%
Inflation Rate*
S&P 500 Index w/5% Cap Rate
*Account values reflect applied rider charge. This example illustrates index crediting and does not represent the past or future performance of any product. Actual results will vary.
*Information gathered from the “Bureau of Labor Statistics” in the U.S. Department of Labor www.bls.gov/home.
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Highlander ® Fixed Index Annuity
Clear Spring Life and Annuity Company
Key Features of the Highlander® Fixed Indexed Annuity
After meeting with their financial advisor, John and Annie feel better knowing they have a plan set in place for retirement that protects them from these four key risks.
Issue Age Range 0-80
Tax Deferral Federal income tax on interest
Death Benefit The Highlander ® annuity pays your named beneficiary the full account value on death. Options for income payments may be available instead of taking a lump sum. If the spouse is the sole Primary Beneficiary, they have the option to continue the annuity in the surviving spouse’s name. Premium Bonus A premium bonus of 10% will be added to the Account Value for all premium deposited in the first year. A recapture charge may be applied for early withdrawals. This bonus is not applied to any Lifetime Withdrawal Rider.
accumulated in the Highlander ® is deferred until you take withdrawals out of the contract. This means that you will be earning interest on money that you would otherwise have to pay taxes on. If you withdraw money from the contract before you are age 59 ½, you may have to pay a tax penalty. Free Withdrawals A single penalty-free withdrawal, of up to 10% of the account value, may be taken each year beginning in the second contract year. Surrender charges or market value adjustment will be waived on free withdrawal amounts. Please refer to the contract for full details. Nursing Home Care Should the owner become confined to a nursing home, Highlander ® provides access to the full account value, without surrender charges or applicable market value adjustments. The benefit becomes available after the first contract anniversary. The contract must be issued prior to the owner’s age of 76 and the confinement in a nursing home must be for at least 90 continuous days. Not available in MA. Please refer to the Contract for full details. Terminal Illness If the owner is diagnosed with a critical illness or is deemed terminally ill by a physician, Highlander ® allows withdrawals up to the full account value without surrender charges or market value adjustments. Please refer to contract for full details.
Premiums Minimum Qualified $5,000
Minimum Non-Qualified $10,000
They knew there were risks, but never had someone explain them. They now have peace of mind knowing that the Highlander ® is protecting them against these unwanted risks in retirement.
The Highlander ® will provide John and Annie a guaranteed income, much like a pension, to supplement their retirement needs for the rest of their lives. This gives John and Annie guaranteed safety to be able to enjoy their retirement and the control of their tax situation.
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Clear Spring Life and Annuity Company
Definition and Key Terms
Is the Highlander ® right for you?
Fixed Rate Strategy Value A fixed rate strategy value equals the amount applied to the 1-year fixed rate strategy, less any amounts withdrawn, including any early surrender charges deducted from those amounts, plus interest credited at the 1-year fixed interest rate. Indexed Strategy Value An indexed strategy value equals the amount applied to an indexed strategy, plus Index Credits, if any, less any gross withdrawals. Account Value The account value equals the premium you pay into your annuity and any interest we credit. Withdrawals, surrender charges, and any other fees or charges will decrease your account value dollar-for-dollar. Surrender Value The surrender value equals the account value, plus or minus the market value adjustment that would apply on a surrender, and minus the surrender charge that would apply on a surrender. Your cash surrender value will never be less than the Minimum Guaranteed Contract Value. Cap A cap is a preset limit that we use to calculate the Index Credit for an index allocation with some crediting methods. With some point-to-point crediting options, we apply a cap, the interest rate is equal to the cap percentage. Caps for the first Term are established when you purchase your Contract. On the Contract Anniversary of the Term, we may change these caps for the coming Term. Caps will never be less than the guaranteed minimum rate.
Participation Rate A participation rate is a preset limit that we use to calculate the Index Credit for an index allocation with some crediting methods. The participation rate for the first Contract Year is established when you purchase your Contract. On the Contract Anniversary of the Term, we may change this rate for the coming Term, but it will never be less than the guaranteed minimum. Point-to-Point The index credit is based on the gain in the index from two points in time, the beginning of the Term and the end of the Term. Index Credits The Index Credit is the amount credited to the Strategy at the end of each Term. It is calculated by applying the rates from the particular strategy to the growth in the index over the Term. Credits can only be applied at the end of the Term. Market Value Adjustment Any amounts that are assessed a surrender charge will also be subject to an MVA, which may increase or decrease the Account Value. The MVA generally increase the contract withdrawal value when interest rates fall, and decrease the contract withdrawal value when interest rates rise. The MVA is not applicable in all states.
The MVA is not applied:
• At the end of the surrender charge period;
• To free withdrawals;
• To the death benefit for the death of owner.
Do other options often seem too complicated? In today’s environment of multiple investment options and ways to prepare for retirement, it is quite easy to have it all become much too complicated. The Highlander ® focuses on simplifying this daunting task by offering the opportunity to enjoy the positives of the S&P 500 market index, while mitigating the risk of a declining market.
Would you like peace of mind?
The Highlander ® annuity gives you the opportunity to grow your assets and build income for the future. The simplicity of one index, the guarantee of a fixed account, and growing income potential provides balance and peace of mind!
Does your money have good balance?
In our early accumulation years, it is okay to take on risk for the potential of greater returns. Many nearing retirement decide to flip the switch and go a completely conservative route. With the Highlander ® , there is an option for balance of capturing a portion of the gains in the market and protecting you against any market downturns.
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About Clear Spring Life
The “S&P 500” and “S&P MARC 5%” are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by Clear Spring Life and Annuity Company. Standard & Poor’s ® and S&P ® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones ® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). It is not possible to invest directly in an index. The Highlander® ® Fixed Indexed Annuity (“Highlander® ® ”) is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices do not make any representation or warranty, express or implied, to the owners of the Highlander® or any member of the public regarding the advisability of investing in securities generally or in Highlander® particularly or the ability of the S&P 500 or the S&P MARC 5% to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices’ only relationship to Clear Spring Life and Annuity Company with respect to the S&P 500 or the S&P MARC 5% is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P 500 and S&P MARC 5% are determined, composed and calculated by S&P Dow Jones Indices without regard to Clear Spring Life and Annuity Company or the Highlander®. S&P Dow Jones Indices has no obligation to take the needs of Clear Spring Life and Annuity Company or the owners of Highlander® into consideration in determining, composing or calculating the S&P 500 or the S&P MARC 5%. S&P Dow Jones Indices is not responsible for and have not participated in the determination of the prices, and amount of Highlander® or the timing of the issuance or sale of Highlander® or in the determination or calculation of the equation by which Highlander® is to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of Highlander®. There is no assurance that investment products based on the S&P 500 or the S&P MARC 5% will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment or tax advisor. A tax advisor should be consulted to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice. NEITHER S&P DOW JONES INDICES NOR THIRD PARTY LICENSOR GUARANTEES THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500 OR THE S&P MARC 5% OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY CLEAR SPRING LIFE AND ANNUITY COMPANY, OWNERS OF THE Highlander®, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 OR S&P MARC 5% OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBLITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND CLEAR SPRING LIFE AND ANNUITY COMPANY, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES. 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, Clear Spring Life and Annuity Company (d/b/a Clear Spring Life and Annuity Insurance Company in California) (“Clear Spring Life”) is not acting as your fiduciary as defined by the Department of Labor. Clear Spring Life, whose office is located at 10555 Group 1001 Way, Zionsville, Indiana, issues the Highlander® Fixed Indexed Annuity on form number GLA-INDEX-02 or a variation of such and GLA-INDEX-02-ID in Idaho. The Highlander® Fixed Indexed Annuity and/or certain features may not be available in all states. Clear Spring Life is not licensed in New York. 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. 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. Guarantees are based on the claims-paying ability of Clear Spring Life. Withdrawals of taxable amounts are subject to ordinary income tax and, if made before age 59½, may be subject to a 10% federal income tax penalty. Distributions of taxable amounts from a nonqualified annuity may also be subject to an additional 3.8% federal tax on net investment income. Withdrawals, including required minimum distributions (RMDs), will reduce the contract value and may reduce the living and death benefits and any optional riders. Withdrawals may be subject to withdrawal charges or market value adjustments. Customers buying an annuity to fund an IRA or qualified retirement plan should do so for reasons other than tax-deferral. IRAs and qualified plans—such as 401(k)s and 403(b)s—are already tax-deferred. Therefore, an annuity should be used only to fund an IRA or qualified plan to benefit from the annuity’s features other than tax deferral. Fixed indexed annuities are not securities and do not participate directly in the stock market or any index and are not investments. It is not possible to invest directly in an index. Neither Clear Spring Life nor its representatives provide legal or tax advice. For legal or tax advice concerning your specific situation, please consult an attorney or tax professional. This is a solicitation for insurance.
Clear Spring Life is a member of Group 1001, an insurance holding company in the United States, with combined assets under management of approximately $58.5 billion as of December 31, 2022. Group 1001 is a long-standing, nimble, and tech-driven financial services enterprise established on deep industry expertise and reliable delivery of long-term value through empowering its customers, employees, and communities.
Leveraging its record of building successful businesses and strong operating fundamentals, Group 1001 powers the next generation of insurance businesses with useful and intuitive solutions and products accessible to everyone. Group 1001 invests in strategic partnerships as part of its mission to transform communities through sports and education.
PO Box 80509 Indianapolis, IN 46280
800.767.7749
ClearSpringLife.com
We can help you create financial flexibility now and for the future.
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©2023 Clear Spring Life and Annuity Company. All rights reserved.
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