Horizon variable annuity from Commonwealth Annuity and Life Insurance Company is an economical, non-feature intensive product that provides a tax-deferred investment opportunity with options for lifetime income. This variable annuity is designed for investors who are looking to accumulate assets and still maintain the flexibility to withdraw all their money on the go (this variable annuity DOES NOT have any surrender charges).
Annuity Facts
Maximum Annuity Age
With the Commonwealth Annuity Horizon variable annuity, the maximum lifetime annuity age is 99. Although available through the age of 90, there are no mandatory payouts till the age of 99. This annuity provides a longer tax-deferral period compared to most other variable annuities.
Investment Options
The Horizon variable annuity from Commonwealth Annuity offers diverse investment options that annuity owners can choose from.
Contributions
Contributions can be derived from payroll deductions, single/periodic payments, and pre-authorized withdrawals from a checking account.
Minimum Purchase Payments
The minimum initial payment for qualified plans is $50, and $5,000 for non-qualified plans.
Withdrawals
Investors in the Horizon variable annuity from Commonwealth Annuity can withdrawal their entire contract value (applicable to taxes) at any time they want.
Contract Fees
- Annual annuity charge – 75%
- Administration fee – 15%
- Mortality & expense risk fee – 60%
- Surrender charges – none
- Transfer charges – none
- Commutation charges – none
- Premium Taxes – between 0% to 3.5%
- Investment management fees – specific to the prospectus, and are charged in addition to the fees above.
- Annual contract fee – $30 (waived if contract value is minimum $50,000.
Annuity Payout Options
Investors can choose from diverse payout options, some of which are:
- Guaranteed life income
- Guaranteed life income for 10 years
- Guaranteed income for life and joint annuitant’s life
Death Benefit
The death benefit paid out to the annuitant’s beneficiaries equals the annuity accumulated value.
Dollar Cost Averaging
Available with the Horizon variable annuity, this option allows investors to take advantage of fluctuating market prices.
Policy Benefits
- No surrender charge period (this is one of very few annuities that allow investors to withdrawal money without being subjected to surrender charges).
- Investment flexibility – investors can choose from a comprehensive range of investment options.
If you’d like to learn more about the Horizon Commonwealth Annuity, or would like to compare this product to similar ones from other companies, get in touch with an annuity product specialist from Annuity Broker.
