The Phoenix Personal Retirement Choice annuity is a 12 year Fixed Indexed Annuity (FIA) with a single premium indexed annuity provision. The product contains a 15% bonus calculated from the initial premium. The bonus is however subject to a twelve-year vesting schedule.
There is also the possibility to allocate funds to various indexed accounts with a guaranteed principal protection and an optional withdrawal benefit.
Phoenix Personal Retirement Choice Features
Minimum and maximum premiums
The minimum single premium for this annuity is $15,000 while the maximum single premium is $1,000,000. Flexible premiums are not accepted with the Phoenix Personal Retirement Choice Annuity. The minimum and maximum single premium amounts apply equally under the qualified and unqualified status.
The annuity also provides for market value adjustment and free 10 day lookup period. This may however vary by state.
Issue age
The Phoenix Personal Retirement Choice annuity is issued to people aged between 0-80 years for the policy owner. The age restriction for annuitization stands at 105 years.
Free withdrawals
This annuity allows policy holders to make 12 free withdrawals per policy year each limited to a maximum 7% the value of the annuity. The withdrawal is based on accumulation. Holders can also withdraw the interest amount only if they wish to. This is however only available after 30 days.
Above the 10% free withdrawal amount, additional withdrawals will be charged for early withdrawals. The charges start at 15.00% for the first years and reduce gradually as follows: 15.00%, 15.00%, 14.00%, 13.00%, 12.00%, 11.00%, 10.00% 9.00%, 8.00%, 6.00% and 4.00% for the twelfth year. The minimum free withdrawal amount is $250 and that of the account value is $2,000.
Market value adjustment
This is based on the Treasury Constant Maturity Rate. The MVA can therefore be a positive or negative change in the amount you receive. If the annuitant withdraws or surrenders their policy, the amount they receive will change depending on the aforementioned rate. The amount will either increase or reduce depending on the changes in interest rates.
Systematic withdrawals
Systematic withdrawals are available with the Phoenix Personal Retirement Choice annuity. These can only be done on a monthly, quarterly, semi-annual, or annual basis. The minimum amount that can be withdrawn is $250 while the minimum account value is $2,000.
Terminal illness
The annuitant may make a withdrawal adjusted by the MVA if the illness occurs before the maturity date. This can be done without incurring a surrender charge provided that more than a year elapses after the issue date and the company receives satisfactory proof of the owner’s illness. Terminal illness in this case is a condition that will cause the owner’s death in a period of six months.
Nursing home confinement
The annuitant can make withdrawals without charges provided they meet several conditions; the withdrawal has to be requested within 2 years of admission to the nursing home; more than one year must have elapsed after the issue date; the annuitant must have been admitted for at least 90 consecutive days; the owner must not have been previously admitted within one year before the date of issue.
Death benefit
The company subdivides this into three scenarios. If the annuitant dies before the contract’s maturity date, the death benefit will be the greater of the accumulation value and the GMV. If the beneficiary spouse survives the annuitant, they may elect to go on with the policy as the owner. If the annuitant dies after the maturity date, the payments continue to a surviving owner or the beneficiary.
State Specific
This annuity is only available in some states. If interested in the Phoenix Personal Income FIA, we recommend that you check with your financial advisor to see if it’s available in your state.
