The Athene Performance Elite 10 Plus is a single-premium, fixed-indexed annuity that has a 10-year surrender charge duration, and a provision for market value adjustment. This annuity product pays a significant premium bonus (usually 9%, but varies by age) that’s subjected to a 10-year vesting schedule. A liquidity rider is automatically attached to this annuity in exchange for a small annual fee. This rider offers additional benefits such as an enhanced free withdrawal threshold, return of premium benefit, and enhanced annuitization.
This annuity product is not available in MD, CT, PR, NY, and VI. A version of this annuity known as the Athene Performance Elite Plus 10 Pro is only available in the state of Florida (as of January 2017).
Performance Elite 10 Plus Annuity Features
Issue Age
The issue age for this annuity product from Athene IA is 0-78 years.
Minimum and Maximum Premiums
The minimum premium is $25,000, while the maximum premium is $1,000,000. Although this is a single-premium annuity, additional premiums are still accepted within the first contract year.
Annuitization
Following the 7th contract year, investors can annuitize their contract and start receiving periodic payouts.
Free Withdrawals
Free withdrawals are available starting the 1st contract year. Policy holders can withdraw up to 10% of their accumulated contract value. If no withdrawal is taken in a certain contract year, this can be carried forward to the next contract year.
Minimum Distributions
RMDs (Required Minimum Distributions), which are a tax requirement for some policies that were funded by tax-deferred money such as IRAs, can be taken in any contract year and are not subjected to free withdrawals, market value adjustments, and bonus vesting schedules.
Systematic Withdrawals
Systematic withdrawals are available on a monthly, quarterly, semi-yearly or yearly frequency. The minimum account balance is $2,000, and the minimum withdrawal value is $500.
Confinement Waiver
Following the first contract anniversary, annuitants can access up to 100% of their contract’s accumulated value if they’re confined to a care facility for no less than 60 consecutive days.
Terminal Illness Waiver
After the first contract year, annuitants can access up to 100% of their accumulated value if they’re diagnosed with a terminal ailment that’s expected to lead to death within a year.
Death Benefit
Upon the annuitant’s death, a death benefit is paid out to appointed beneficiaries.
Potential Advantages
In addition to the benefits of the Performance Elite 10 annuity, the Performance Elite 10 Plus annuity comes with some additional liquidity features:
- Enhanced free withdrawals – instead of 5% exercised with the Performance Elite 10 annuity product, the free withdrawal threshold is increased to 10%. If no withdrawal is made within a given contract year, the 10% is carried on to the next year, which means the investor will now have leeway to withdrawal up to 20% of their accumulated value. This benefit is also not available with the Performance Elite 10 annuity.
- Return of premium benefit – following the 4th contract year, the cash surrender value is never less than the premium less taxes and prior withdrawals.
- Rider charge – the Athene Performance Elite Plus annuity comes with a liquidity rider whose charge is deducted from the investor’s accumulated value during the withdrawal charge duration.
