Product Features
Death Benefit
Lifetime Income
An important feature of annuity contracts is the ability to have an income that you cannot outlive. Clear Spring Life can provide you with a guaranteed income stream with the purchase of your tax-deferred annuity, through the ability to annuitize, which turns the deferred account into a scheduled stream of income payments. You will have the ability to choose from 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, or for payments over the lifetime of two joint annuitants. If the annuitization is for a minimum of ten (10) years, (or for a minimum of five (5) years after the initial guarantee period) no surrender charges or market value adjustment will be applied when calculating your payout.
The named beneficiary(ies) of the Preserve Multi-Year Guaranteed Annuity will be paid a death benefit that is equal to the account value. Once Clear Spring Life receives the notification of death and 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.
Penalty-Free Withdrawals
May Avoid Probate
Preserve Multi-Year Guaranteed Annuity provides a single penalty-free withdrawal each year beginning in contract year two (2). The maximum free withdrawal amount will be 10% of your account value on the previous contract anniversary. A penalty-free withdrawal waives any surrender charges or market value adjustment on the withdrawn amount. Amounts withdrawn in excess of the 10% penalty free amount will incur a surrender charge and market value adjustment, if applicable. Surrender charges on Internal Revenue Service (IRS) required minimum distributions (RMD) exceeding the penalty-free withdrawal amount will be waived.
By naming a beneficiary (other than your estate), your deferred annuity will be paid directly to the beneficiary, thereby avoiding inclusion in a probated estate. This benefit may minimize the delays, expenses and publicity often associated with probate. Your designated beneficiary receives death proceeds in either a lump sum or a series of income payments.
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