The SecureOption Focus 1 from Minnesota Life is a single-premium annuity that accepts additional premium payments within the first 6 months. This annuity offers a 1-year fixed interest rate, a 7-year surrender charge duration, and is meant for investors who are looking to include annuities in their retirement planning arsenal (it’s not ideal for shorter-term financial goals). The SecureOption Focus 1 annuity is available as a low band ($10,000-$34,999), medium band ($35,000-$99,999), or high band ($100,000 – $1,000,000) investment.
SecureOption Focus 1 Annuity Facts
- Maximum issue ages – 88 years
- Minimum single premium – $10,000
- Maximum single premium – $1 million
- Return of Premium Rider – this guarantees that you surrender value is never less than your entire purchase payments minus withdrawals. However, note that any withdrawals taken before the age of 59½ years might be subjected to a 10% federal tax penalty.
- Free withdrawals – starting the first contract year, contract owners might withdraw up to 10% of their contract value free of any withdrawal charges.
- Systematic withdrawals are available
- Surrender Charge Schedule
| Contract Year | 1 | 2 | 3 |
4
|
5 | 6 | 7 |
| Surrender Charge (in %) | 7 | 7 | 7 | 6 | 5 | 4 | 3 |
- Annuitization – the annuitization age restriction is 95 years. Various annuitization options are available. These include Life Only, Life with Period Certain, and Life with Installment Refund.
- Terminal Illness Waiver – following the first contract anniversary, the investor is allowed charge-free access to their account value if they’re diagnosed with a terminal illness that’s expected to cause death within 12 months.
- Minimum Distributions – any excess amount needed to meet IRS minimum distributions is not subjected to withdrawal charges.
- Extended Care Waiver – after the first contract anniversary, if the annuity owner is confined to a health care center for a period of time not less than 90 days, then they’re allowed to access up to 100% of their contract value free of any charges.
