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!
ViStar ® Fixed Indexed Annuity
Single premium, deferred, fixed indexed
Sound Complicated? Let’s Simplify.
There are many stages in life ranging from graduation, to raising a family, to living in retirement. Clear Spring Life and Annuity Company is here to help you prepare for today and all the possibilities of tomorrow. See how we can bring peace of mind by launching you to financial freedom. The ViStar ® is a single premium, deferred, fixed indexed annuity that allows you to accumulate funds, benefit from tax deferral, and maintain a simplified allocation.
Single Premium The easiest piece. This contract is purchased with a single sum of money. However, additional funds may be deposited to the fixed account, within the first 12 months of the contract. At the end of the contract year, funds may be reallocated into the indexed account. Deferred This relates to the fact that the annuity is designed to accumulate money over time, with income tax being deferred until withdrawn. Income tax deferral is allowed by the Internal Revenue Service on interest earnings until they are distributed, allowing your money to compound and accumulate more quickly.
Fixed Indexed This simply means that the earnings in your annuity contract are linked to an external market index. The value of the index is tied to a particular equity or multi-asset index. This gives you the ability to enjoy the growth in a market index, without exposing your principal to the risk of market fluctuations found in variable annuities. The ViStar ® is a single premium, deferred, fixed indexed annuity that allows you to accumulate funds, benefit from tax deferral, and maintain a simplified allocation.
2
3
ViStar ® Fixed Index Annuity
Clear Spring Life and Annuity Company
Have a Purpose for Every Dollar.
In the investing landscape, there are a wide variety of options. It is important to understand what purpose you have for each dollar and apply them to the correct investment option. Often diversifying your assets across multiple investment options is the best way to achieve your goals.
The ViStar ® has many features that make it a great option which include:
•
Limiting the risk of market fluctuation
•
Helping you avoid poor market timing
• Provide guaranteed income for your lifetime*
• Better potential to keep pace with inflation
•
Tax deferral on interest and index gains
•
Simplified index strategies
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 be credited with earned interest and will receive income tax deferral, which results in a secure and dependable account balance. Clear Spring Life and Annuity Company offers these tools with your future in mind.
*This Benefit is available under the Life Annuity Settlement Option. Please refer to the Contract for full details.
4
5
ViStar ® Fixed Index Annuity
Clear Spring Life and Annuity Company
Your Financial Journey
Stage 1: The Accumulation Years
It is vital that we save during our accumulation or working years to allow us to have the lifestyle we aspire for once we reach retirement. Navigating through the various investment options can be a daunting task. With restrictions on how much can be invested into an employer sponsored retirement plan or an Individual Retirement Account, fixed indexed annuities may provide a great alternative to retirement savings.
ViStar ® Fixed Indexed Annuity Launching you to financial freedom The ViStar ® Fixed Indexed Annuity can be a useful tool for individuals who are in different periods of their lives. Annuities are often viewed as insurance products that are only appropriate for those nearing their retirement age, but with the advancements in annuities, they can be utilized to help individuals face their unique financial challenges at every stage of life.
Through a ViStar ® Fixed Indexed Annuity during the accumulation phase you can:
• Maximize growth opportunities through tax deferral
• Receive a portion of market gains, if available, with 100% protection from market losses
• Assign a beneficiary(ies) to potentially avoid probate
• Opt to have the annuity owned by a trust to direct family wishes
• Create a hedge against inflation
• Have a safe alternative in a low interest rate environment
Advantages of Tax Deferral
Currently Taxed
Tax Deferred
Dollar Amount
$100,000
$100,000
Assumed Annual Return
5%
5%
Dollar Amount Earned
$5,000
$5,000
Tax Bracket
32%
32%
Tax Payable
$1,600
$0
After Tax Earnings
$3,400
$5,000
Net After - Tax Yield
3.4%
5%
6
7
ViStar ® Fixed Index Annuity
Clear Spring Life and Annuity Company
Stage 2: Entering and In Retirement
Protecting a portion of your assets from market loss right before and into retirement may create a lasting effect. Let’s look at how two major downturns in the market could have created a different story by utilizing a ViStar ® Fixed Indexed Annuity.
How Do Crediting Strategies Work?
FIA With 40% Participation Rate on the S&P 500
Year
S&P 500 Annual Return
1999
19.53%
7.81%
2000
-10.14%
0.00%
2001
-13.04%
0.00%
Growth of Your Investment
2002
-23.37%
0.00%
2003
26.38%
10.55%
Fixed indexed annuities offer 100% protection from market losses while in return providing a portion of market gains (if any) over a certain period of time. The portion of the gains credited to the ViStar ® Fixed Indexed Annuity are determined by the crediting strategy(ies) that you choose. The crediting strategies include a fixed interest rate, a participation rate, or a cap rate. Here’s how they work. Fixed Interest Rate – A predetermined interest rate guaranteed for a certain period. Participation Rate – The annuity receives a set percentage of the total index performance over a certain period. Example: Index growth of 10%, with a 40% participation rate, the annuity would earn 4% for that period. Cap Rate – The annuity receives 100% of the index growth up to a predetermined ceiling or cap. Example: Index growth of 10%, with a 4% cap rate, the annuity would earn up to its ceiling of 4%. Why are there multiple options to choose from? In various market conditions the strategies react differently. In the above examples, a large growth in the index would prove to be most beneficial with the utilization of the participation rate. While in a low growth environment, the cap rate would be best.
Annualized Return From 1999 - 2003
-1.91%
3.84%
FIA With 40% Participation Rate on the S&P 500
Year
S&P 500 Annual Return
2007
3.53%
1.41%
2008
-38.49%
0.00%
2009
-23.45%
9.38%
Annualized Return from 2007 - 2009
-7.13%
3.64%
Even with strong returns in the S&P 500 before and after the downturn, protecting against market loss with a fixed indexed annuity proved to be the better option. The year 2008 also proved to be a trying time for those looking to start retirement or even stay retired. Imagine if market protection had been used effectively for those who needed it the most.
Stage 3: Creating a Legacy
One of the many benefits to owning a ViStar ® Fixed Indexed Annuity is the ability to create a legacy. Legacies can take on many forms; the great advantage is the ViStar ® is a versatile financial tool that can help serve various needs. Here’s some various forms of legacy creation available utilizing a fixed indexed annuity… • Opportunity to pass accumulated wealth to children or grandchildren who are designated as beneficiaries
• These funds can be used to help with needs, such as: – Education – Wedding – Home
• Charitable causes
With the ViStar ® Fixed Indexed Annuity, you can plan for the future, but also live for today. No matter the stage in life, we are here to help.
8
9
ViStar ® Fixed Index Annuity
Clear Spring Life and Annuity Company
Key Features of the ViStar ® Fixed Indexed Annuity
Allocating and Reallocating Accumulated Value in an Indexed Annuity
Issue Age Range 0-80
Tax Deferral Federal income tax on interest
Terminal Illness Rider* If the owner becomes terminally ill or is deemed terminally ill by a physician, ViStar ® allows withdrawals up to the full account value without surrender charges or applicable market value adjustments. Eligibility is subject to rider provisions, which are:
accumulated in the ViStar ® 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. 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. Nursing Home Care Rider* Should the owner become confined to a nursing home, ViStar ® 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. Death Benefit The ViStar ® annuity pays your named beneficiary(ies) 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.
Premiums Minimum Qualified $5,000
Minimum Non-Qualified $10,000
1. Physician must certify that the owner’s life expectancy is nine months or less; or
Additional Premium Minimum
$500 (1st year only)
2. The owner is diagnosed with a heart attack, stroke or life
Maximum Premium $1,000,000
threatening cancer after the policy was purchased, in force for one year and owner is not over age 70.
You are given indexed crediting strategy options when first purchasing the ViStar ® Fixed Indexed Annuity. This is an important step in determining the overall performance of the annuity. Often individuals utilize multiple strategies at once to create a diversified investment given the uncertainty of future market performance. It is important to remember what an index has done in the past is no guarantee on how it may perform in the future. Diversification assists
in eliminating the guesswork. The ViStar ® Fixed Indexed Annuity also allows for the option of reallocation each contract anniversary. This allows for flexibility throughout the life of the contract along with the ability to have a truly personalized investment experience.
Please refer to the contract for full details.
10 ViStar ® Fixed Index Annuity
11
Clear Spring Life and Annuity Company
Definition and Key Terms
Is the TriVysta TM Fixed indexed Annuity 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. If the change exceeds the 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 cap 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 participation rate. 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: a) at the end of the surrender charge period; b) to penalty-free withdrawals; or c) to the death benefit for death of owner.
Is the market too “up and down” for you? In today’s economy, the volatility in the market only emphasizes the need for diversification in your retirement planning. The TriVysta TM Fixed Indexed Annuity provides opportunities to enjoy the positives of market indexes, while mitigating the risk of declining markets. Your principal is guaranteed. You have choices and are able to design a contract that fits your needs. Is your money working for you? Taking control of your plan and using the various tools available to you only makes sense. TriVysta TM allows you to be confident that your money is working for you, and gives you opportunities to fine-tune your fund allocations each term to meet your financial needs during the current economic conditions. Is it time for Peace of Mind? The TriVysta TM gives you the opportunity to grow your assets and build income for the future. The flexibility of multiple indexes, the guarantee of a fixed account, and growing income potential provides balance and peace of mind!
12 ViStar ® Fixed Index Annuity
13 Clear Spring Life and Annuity Company
About Clear Spring Life
The “S&P 500, S&P MARC 5% EXCESS RETURN INDEX, S&P 500 SECTOR ROTATOR DAILY RC2 5% INDEX ER and S&P ECONOMIC CYCLE FACTOR ROTATOR INDEX” 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”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Clear Spring Life and Annuity Company. It is not possible to invest directly in an index. ViStar ® Fixed Indexed Annuity (“ViStar ® ”) 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 ViStar ® or any member of the public regarding the advisability of investing in securities generally or in ViStar ® particularly or the ability of the S&P 500, S&P MARC 5% EXCESS RETURN INDEX, S&P 500 SECTOR ROTATOR DAILY RC2 5% INDEX ER and S&P ECONOMIC CYCLE FACTOR ROTATOR INDEX 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, S&P MARC 5% EXCESS RETURN INDEX, S&P 500 SECTOR ROTATOR DAILY RC2 5% INDEX ER and S&P ECONOMIC CYCLE FACTOR ROTATOR INDEX is the licensing of the Indices and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P 500, S&P MARC 5% EXCESS RETURN INDEX, S&P 500 SECTOR ROTATOR DAILY RC2 5% INDEX ER and S&P ECONOMIC CYCLE FACTOR ROTATOR INDEX are determined, composed and calculated by S&P Dow Jones Indices without regard to Clear Spring Life and Annuity Company or ViStar ® . S&P Dow Jones Indices have no obligation to take the needs of Clear Spring Life and Annuity Company or the owners of ViStar ® into consideration in determining, composing or calculating the S&P 500, S&P MARC 5% EXCESS RETURN INDEX, S&P 500 SECTOR ROTATOR DAILY RC2 5% INDEX ER and S&P ECONOMIC CYCLE FACTOR ROTATOR INDEX. S&P Dow Jones Indices are not responsible for and have not participated in the determination of the prices, and amount of ViStar ® or the timing of the issuance or sale of ViStar ® or in the determination or calculation of the equation by which ViStar ® is to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices have no obligation or liability in connection with the administration, marketing or trading of ViStar ® . There is no assurance that investment products based on the S&P 500, S&P MARC 5% EXCESS RETURN INDEX, S&P 500 SECTOR ROTATOR DAILY RC2 5% INDEX ER and S&P ECONOMIC CYCLE FACTOR ROTATOR INDEX 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. S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500, S&P MARC 5% EXCESS RETURN INDEX, S&P 500 SECTOR ROTATOR DAILY RC2 5% INDEX ER AND S&P ECONOMIC CYCLE FACTOR ROTATOR INDEX 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 VISTAR ® , OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500, S&P MARC 5% EXCESS RETURN INDEX, S&P 500 SECTOR ROTATOR DAILY RC2 5% INDEX ER AND S&P ECONOMIC CYCLE FACTOR ROTATOR INDEX 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 POSSIBILITY 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 ViStar ® Fixed Indexed Annuity on form number GLA-INDEX-02 or variations of such. The ViStar ® Fixed Indexed Annuity and/or certain product features may not be available in all states. Clear Spring Life is not licensed in New York. Annuity contracts contain limitations. Please consult your 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 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 brochure and the annuity contract, the terms of the annuity contract shall be controlling. 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 of tax professional.
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.
14 ViStar ® Fixed Index Annuity
15 Clear Spring Life and Annuity Company
©2023 Clear Spring Life and Annuity Company. All rights reserved.
VFIA052216
Page 1 Page 2-3 Page 4-5 Page 6-7 Page 8-9 Page 10-11 Page 12-13 Page 14-15 Page 16Made with FlippingBook - Share PDF online