Commonwealth Annuity Preferred Plus variable annuity offers a 9-year surrender charge period and a 4% bonus on all purchase payments. Contributions can be automatically deducted from the payroll for qualified plans. The Preferred Plus variable annuity has a fixed account that provides a guaranteed minimum interest rate of 1% through the life of the contract. For qualified contracts, up to $1 million can be deposit annually, while only $100,000 can be contributed each year for non-qualified plans. Subject to restrictions, money might be transferred in and out of the fixed account.

Preferred Plus Variable Annuity Features

Minimum and Maximum Payments

Minimum amount for qualified payments is $50. Minimum amount for non-qualified payments is $2,500. The maximum allowed payments through the life of the contract is $1,000,000.

Issue Ages

0-79 years

Withdrawal Provisions

Each year, investors can withdrawal up to 10% of their contract value free of any charges. If more than 10% withdrawal is taken, then it’s subjected to the withdrawal charge schedule.

Contract Charges

• Mortality & expense risk charge – 1.35%
• Contract fee – $30 (waived if contract value is minimum $50,000)
• Administration charge – 0.15%

Note: These types of annuities may carry additional fees and expenses. See the specific fund prospectus or work with your financial products advisor to learn more.

Investment Options

There are more than 60 investment options available with the Preferred Plus variable annuity from Commonwealth Annuity.

Annuity Payout Options

Multiple payout options are available, some of which include:

• Guaranteed income for life
• Guaranteed for life & joint annuitant’s life
• Guaranteed income for specified time duration of 10 years
• Annuitization must be before the 90^th birthday of the oldest owner (or annuitant)

Standard Death Benefit

Before the age of 75, the death benefit is one of the following (less premium taxes):

• Contract value minus debt
• 100% of investor’s purchase payments, adjusted for withdrawals, minus debt.

Step-Up Death Benefit Rider

This rider is available at a 0.20% annual fee. In this case, the death benefit is one of the following (less premium taxes):

• Contract value minus debt
• Highest contract value before the oldest annuitant’s 81^st birthday, adjusted for purchase payments and withdrawals, minus debt.

Disability Waiver

After the second contract anniversary, and before the annuitant’s 66^th birthday, withdrawal charges are waived if the annuity owner is diagnosed with physical or mental disability that’s expected to last no less than 1 year.

Extended Care Waiver

After the second contract anniversary, and before the annuitant’s 75^th birthday, withdrawal charges are waived if the annuity owner is hospitalized for at least 90 days.

If you’d like to learn more about the Preferred Plus premium fixed and deferred variable annuity by Commonwealth, or would like to compare this product to similar ones from other companies, get in touch with an annuity product specialist from Annuity Broker.