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!
WHEN A MYGA MAKES SENSE Learn more about multi-year guaranteed annuities (MYGAs)
Issued by Nassau Life and Annuity Company or Nassau Life Insurance Company
When should you consider a MYGA?
A fixed annuity may help you meet your retirement savings goals.
ENTERING A NEW LIFE STAGE
Are you getting close to, or are you in retirement and seeking competitive interest rates without market risk?
LOOKING FOR BETTER RATES
Are you seeking higher rates than many money markets and bank certificate of deposits (CDs) currently offer?
NEED STEADY INCOME DURING RETIREMENT
Are you looking for guaranteed return rates over a four year or longer period?
DESIRE A LOW-RISK SAVINGS OPTION Do you want a simple retirement savings option that doesn’t put your principal at risk?
HAVE YOU MAXED OUT RETIREMENT CONTRIBUTIONS Have you not yet retired but regularly max out your 401(k) or IRA contributions?
2
OUR MYGA OFFERS OTHER FLEXIBLE BENEFITS YOU MAY VALUE
ANNUITIZATION OPTIONS
AVAILABLE SPOUSAL CONTINUATION
You may choose to annuitize after the first contract year with no penalty. There are currently
If the spouse of a deceased owner is the beneficiary, the surviving spouse has the option to elect to continue the contract as the new owner. In the case of a non-qualified contract, the surviving spouse must be the sole beneficiary.
seven annuity payment options available from which to choose.
NURSING HOME & TERMINAL ILLNESS WAIVERS
FREE WITHDRAWAL
Nassau MYAnnuity® 5X/7X and Nassau MYAnnuity 5X in NY offer a choice between 0% and 10% annual free withdrawals. Your election must be made when you apply. Nassau Simple Annuity offers 5% annual free withdrawals. You may withdraw up to the free withdrawal amount (if included) without a surrender charge or market value adjustment.
We also offer nursing home and terminal illness surrender charge waivers (a market value adjustment may still apply). Surrender charges may be waived if the owner is admitted into a licensed nursing home or if the owner is diagnosed with a terminal illness that is expected to result in a death within six months. Waivers are only available after the first contract year. Subject to state approval and certain conditions being met.
TRUSTPILOT RATINGS
Excellent
Rated 4.8 out of 5, based on 3,190 reviews*
Gary M. GREAT SERVICE! Your representative was helpful, efficient, friendly, and was able to quickly answer all my questions.
Susan W. VERY KNOWLEDGEABLE AND ACCOMMODATING!
Lawrence B. A GREAT EXPERIENCE!
The representative was very knowledgeable and very helpful. All questions were answered, and she made me feel like she was here to help.
John L. NICE REPRESENTATIVE Nice representative. Courteous and efficient.
*Rating information as of 9/2/22 for all Nassau Financial Group subsidiaries, which may include life, annuity, or other policy/contract holders. Subject to change.
For the most recent Trustpilot ratings please scan here
COMPARING A MYGA
UNDERSTANDING THE DIFFERENCES Both vehicles offer a safe way to save money, crediting higher interest rates than available through savings accounts by requiring you to “lock” your money away for a period of time. However, fixed annuities are insurance products, so guarantees and payments are based on the claims paying ability of the insurance company. Here is a comparison of some of the key features of annuities and Certificates of Deposit (CDs):
TO A BANK CD
Fixed Annuity
CD
Sold By
Insurance Companies
Banks
Size
~ $5,000 - $1,000,000
Virtually any denomination
3-10 years, but may vary by carrier and product
3 months – 10 years, but may vary by bank
Term
Vary by term and size but typically higher than CD rates
Vary by term and size but typically lower than fixed annuity rates
Interest Rates
In general, interest is taxable annually as earned
In general, contract growth is tax-deferred
Taxes
Any amount withdrawn is generally subject to a penalty
You may be allowed to withdraw a portion of the premium annually without penalty
Liquidity
A surrender charge and market value adjust- ment typically apply to any withdrawals above the free withdrawal amount*
Withdrawal Provisions
All withdrawals are charged, typically equal to a set number of days of interest
Each depositor is insured by the FDIC up to at least $250,000
FDIC Insured
No
This is a general comparison for illustrative purposes only. It is not intended as financial or tax advice. You should carefully consider your options and consult with a financial and tax professional for help determining which product is best for you. Actual details may vary depending on the insurance company, bank and/or product. *A surrender charge is equal to a percentage of the amount withdrawn that is above any free withdrawal amount. If you take a withdrawal in excess of the free withdrawal amount or surrender your contract, you may pay a surrender charge which may result in the loss of some or all of your previously earned interest and a partial loss of principal. The early withdrawal penalties under annuities are generally higher than the penalties paid under a CD. Contracts vary, refer to contract materials for specific details.
FREQUENTLY ASKED QUESTIONS
What is a multi-year guaranteed annuity, or MYGA? A multi-year guaranteed annuity, or MYGA, is an insurance product that provides guaranteed interest rates for a set period of time. These contracts are typically funded with a single premium payment. The insurer will credit interest to your contract’s value from the date of issue until the end of the guarantee period. They are long-term products and early withdrawals may be subject to a surrender charge and market value adjustment. What is the difference between a MYGA and other fixed interest-type products? There are a number of important differences between MYGAs and other fixed-interest types of products. Various types of financial products may make sense for your needs and this is not intended to be a comprehensive comparison. What’s important to understand about MYGAs is that they are insurance products issued by an insurance carrier. Their guarantees are backed by the financial strength and claims-paying ability of the issuing company. They are not FDIC insured. Fully review product details before making a purchasing decision. Should I put all of my money in a MYGA? No. While a MYGA offers competitive interest rates, any premium placed in a MYGA will be subject to surrender charges that decline over time and possibly a market value adjustment. Carefully consider your liquidity needs before purchasing a multi-year guaranteed annuity. What penalties will I pay if I surrender my entire contract early? Withdrawals above any free withdrawal amount including withdrawals of the entire contract value, a.k.a. “surrendering” your contract are generally subject to a surrender charge and market value adjustment. Free withdrawal amounts may vary by product. Keep in mind that any withdrawals will reduce the contract value. Additionally, withdrawals are taxed as ordinary income and, if taken prior to age 59 1/2, a 10% federal tax penalty may also apply. Before making a purchasing decision, it’s important for you to speak with a financial and tax professional to understand exactly how surrender charges, market value adjustments and taxes apply to your specific annuity contract. What is the least amount of money I need to buy a MYGA? Nassau Simple Annuity requires a minimum of a $5,000 and Nassau MYAn- nuity requires a minimum of a $10,000 premium or transfer of assets to purchase one of Nassau’s MYGA products.
Who should consider a MYGA?
Who is responsible for the MYGA’s guarantees? The issuing insurance carrier is responsible for the guarantees. Guarantees are backed by the financial strength and claims-paying ability of the issuing carrier. attractive. Assets in a MYGA are not subject to market fluctuations as they are fixed insurance products. They can be used to generate a predictable stream of income. However, the premium can generally not be withdrawn prior to the end of the guarantee period without incurring a surrender charge and possible market value adjustment. Any consumer should carefully consider his or her financial situation and potential need for liquidity in the coming years before purchasing a MYGA. Who should consider a MYGA? Generally, retirees over the age of 60 find the benefits of the product most
FREQUENTLY ASKED QUESTIONS
Can I take penalty-free withdrawals if I get sick? Some contracts include provisions that will allow you to withdraw some or all of your annuity’s contract value without paying surrender charges if a qualifying event occurs, for example if you were to suffer from a terminal illness. Can I change my mind after I have purchased a MYGA? You will have at least 10 days (varies by state) to review the contract for your multi- year guaranteed annuity after you buy it. If you decide during that time that you don’t want it, you can return the annuity and get all of your premium back, less any prior withdrawals. Read the cover page of your annuity contract as soon as you receive it to understand how many days you have to decide if you don’t want to keep it. Who gets the money if I die? For a single owner, the beneficiary (or beneficiaries) that the owner named on the application will receive the death benefit. For joint owners, the benefit will be paid to the surviving owner. The Internal Revenue Code has distribution at death requirements. These are described in your annuity contract and are based on the death of the owner unless the contract is owned by a trust. If the spouse of a deceased owner is the designated beneficiary, the surviving spouse can continue the contract as the new owner in lieu of receiving the death benefit. What if I die before the maturity date of the contract? A death benefit will be paid upon the death of a contract owner, or annuitant if the contract is owned by a trust, following the date the company receives a certified death certificate or an order of a court of competent jurisdiction. The death benefit is equal to the greater of the contract value or the guaranteed value as of the date of death. Generally no surrender charge or market value adjustment will apply. How does this affect my taxes? In general, annuities are tax-deferred, which means you don’t pay taxes on the in- terest earned until you receive a distribution. When you take a withdrawal or begin receiving income, the distributions are subject to ordinary income tax. Earnings on your contract are taxed at ordinary income tax rates when you withdraw them, and you may have to pay a penalty if you take a withdrawal before age 59½. Buying an annuity within an IRA, 401(k) or other tax-deferred retirement plan doesn’t give you any extra tax benefit. In general, any death benefits paid will be taxable to beneficiaries. Choose the annuity based on its other features and bene- fits as well as its risks and costs, not its tax benefits. This is only a summary based on current laws and and is not intended as tax advice. Please consult a tax profes- sional regarding your unique situation and for complete tax information.
Are there age restrictions to buy a MYGA?
What happens at the end of the guarantee period? At the end of the guarantee period, you usually have the flexibility to continue for another period, based on the original guarantee period, or choose a new period with a different time line. At the end of each guarantee period, the carrier will typically declare a new interest rate for each new guarantee period. If the carrier receives no direction from you, the carrier will usually automatically renew your annuity for the same period at the then-current interest rate. If you would prefer to withdraw some or all of your contract value at the end of any guarantee period, you will generally have a 30-day window to do so, free of any surrender charge or market value adjustment. Are there age restrictions to buy a MYGA? Yes, carriers will generally issue MYGAs to individuals up to age 85.
WHEN A MYGA MAKES SENSE
Important Disclosures Annuity contracts may be subject to possible loss of principal and earnings, since a surrender charge and market value adjustment may apply to withdrawals or upon surrender of the contract. Annuities are long-term insurance contracts. Annuities held within qualified plans do not provide any additional tax benefit. With certain exceptions, surrender charges apply to withdrawals taken during the initial guarantee period and a market value adjustment, which may increase or decrease the amount received upon withdrawal, may also apply at any time. All or a portion of amounts withdrawn are subject to ordinary income tax, and if taken prior to age 59 1⁄2, a 10% IRS penalty may also apply. Nassau does not provide tax, financial or investment advice, or act as a fiduciary in the sale or service of the product. Consult a tax advisor or financial representative about your specific circumstances. The information above is intended for use by the general public and is not individualized to address any specific investment objective. It is not intended as investment or financial advice. We encourage you to consult with an advisor who can tailor a financial plan to meet your needs. Product features, options and availability may vary by state. Guarantees are based on the claims-paying ability of the issuing company. Nassau Simple Annuity (18FADTCP and ICC18FADTCP) and Nassau MYAnnuity 5X/7X (18IFDAP and ICC18IFDAP/ICC18IFDANP) single premium deferred fixed annuities are issued by Nassau Life and Annuity Company (Hartford, CT). Nassau Life and Annuity Company is not authorized to conduct business in ME and NY, but that is subject to change. In New York, Nassau MYAnnuity 5X (17IMGA) is issued by Nassau Life Insurance Company (East Greenbush, NY). Nassau Life and Annuity Company and Nassau Life Insurance Company are subsidiaries of Nassau Financial Group. The insurers are separate entities and each is responsible only for its own financial condition and contractual obligations. Insurance Products: NOT FDIC or NCUAA Insured, NO Bank or Credit Union Guarantee.
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