Future Provider Bonus by Americo is a fixed indexed annuity (FIA) with a 10 year surrender charge period. In specifics, it is a single premium Equity-Indexed Annuity. The product is not available in AL MN MS NY PR VI and VT. The annuity pays a 5% interest credited to the account in the first year for the premium amount.
Future Provider Bonus Features
Issue age
The issue age restrictions stand at 0-85 years for qualified and non-qualified owners. The annuitization age is restricted to 100 years
Premiums
- Minimum for qualified and non-qualified payments – $10,000.
- Maximum for qualified and non-qualified payments – $1,000,000.
- Flexible premiums are not accepted with this annuity.
- Payroll deductions-$83 for qualified payments
- Minimum added premium- $1,000 for qualified and non-qualified payments.
Death benefit
The death benefit is equal to the policy value at the time of the annuitant’s death. This will be the greater of the GMV or the accumulation value. There are other additional options if the client selects a death benefit rider. These involve payments of proceeds over a period of 15 or 25 years. The total proceeds will be the death benefit multiplied by a percentage that will never be less than 130% and 150% respectively for the above-mentioned options.
The first option will be inapplicable if one of the beneficiaries is past the age of 71 at the time of the annuitant’s death.
Free withdrawals
With Americo’s Future Provider Bonus, you can withdraw up to 10% of your contract value once on each contract year. The withdrawal will be based on accumulation. Withdrawals above the free 10% will attract early withdrawal charges that gradually reduce from the first to the last year from about 13.50% in the first year to 1.00% in the tenth year. Annuitants can also withdrawal the accumulated interest only but only after 30 days. The account must however remain with at least $2,000 after free withdrawals each of which must be at least $500.
Systematic withdrawals
Systematic withdrawals are available. The minimum amount one can withdraw from their account is $500. The minimum account value is $2,000.
