Compound Interest This type of interest accrues on the total contract value, which is a benefit to the owner as the annuity grows using both the principal and interest earned. All of ELCO Mutual’s deferred annuity products utilize this form of accumulation to provide the owner with the best growth possible. The Power of Tax-Deferral The tax-deferred advantage is especially beneficial to contract owners who have an annuity that uti- lizes compound interest because it helps the funds grow at an accelerated rate. To illustrate, the graph to the right shows two products that are earning the same interest rate. The tax-deferred product shows a much higher return because the value of the con- tract isn’t reduced every year from having to pay
CDs vs. TAX-DEFERRED ANNUITIES
$250
$200
$150
$100
0
15
30
CD/Taxed
Tax-Deferred Annuity
Premium Payment Options SINGLE PREMIUM: All of ELCO’s MYGAs are purchased with a single premium (a lump sum). Con- tract owners do have 90 days to make additional contributions to their annuity, but no additional funds can be added once that window passes. FLEXIBLE PREMIUM: ELCO offers a flexible premium deferred annuity that provides owners with a current interest rate (non-guaranteed) that can be adjusted by the board of directors at any time. However, contract owners are provided with a guaranteed minimum which can be found in the con- tract. Just like the single premium option.
This contract also offers a nursing home/terminal illness feature that can waive all withdrawal charges for qualifying conditions at no additional cost. Please refer to the contract for more information regarding the qualifying conditions.
This brochure is not a contract. Descriptions of policy provisions are only partial. In the event of a conflict, the policy will govern. Any guarantees are backed by the claims paying ability of the company. Form Numbers: (1-Yr) ICC19-MYGA1-19, (2-Yr) ICC19-MYGA2-19, (3-Yr) ICC19-MYGA3-19, (4-Yr) ICC19-MYGA4-19, (5-Yr) ICC19-MYGA5-19, (7-Yr) ICC19-MYGA7-19 & (10-Yr) ICC19-MYGA9-19. Policy forms may vary by state. ELCO Mutual and its representatives do not offer tax or legal advice. Not FDIC insured. Rates subject to change.
Made with FlippingBook - Share PDF online