The guaranty 6 annuity by Guaranty Income Life is a multi-year guaranteed fixed rate annuity that has a 6 year surrender charge period. The product is a single premium deferred annuity where the market value adjustment is applied to withdrawn premiums within the guarantee period. The adjustment could either increase or decrease the annuity’s surrender value.
Guaranty 6 Features
Rate guarantees
The policy holder’s annuity will earn a 1st year interest of 3.25% that is guaranteed for the six year contract period. Guaranty 6 has no sales charges. This ensures that the entire amount of the annuity money is working for the client.
Minimum and maximum premiums
The annuity does not offer a free look period. The minimum single premium an annuitant can make is $5,000 and $2,000 for non-qualified or qualified. The maximum single premium non-qualified premium varies by age. It stands at $600,000 for all persons. Flexible premium payment is not allowed.
Issue age
Guaranty 6 is issued for persons between 0-79 years of age. This applies for the annuity owner and the annuitant as well.
Free withdrawals
Guaranty 6 allows policy holders to make 12 free withdrawals. However, only the interest amount can be withdrawn without incurring early withdrawal charges. The withdrawal is based on accumulation. This annuity also allows annuitants the option to withdraw interest only. The minimum withdrawal amounts and account values are $100 and $5,000 respectively. For withdrawal amounts above the interest, additional withdrawals will be charged at 8% of the value for the first year. The rates will reduce to 7%, 7%, 6%, 5%, and 4%, for the sixth year.
Market value adjustment
For the first six years of the contract, the annuitant will be subject to an MVA should they decide to make withdrawals on the premium. This will be based on the five year Treasury bond at the time the withdrawal is carried out. The MVA could either increase or reduce the annuitant’s withdrawal charge.
Systematic withdrawals
Systematic withdrawals are available with Guaranty 6. These have monthly withdrawal frequencies. The minimum amount that can be withdrawn is $100 and the minimum account value is $2,000
Death benefit
The accumulated value of the annuity will be the death benefit in the event of death of the annuitant. A surviving beneficiary spouse can continue with the policy as the owner.
State Specific
This product was not available in AK CT DC DE HI ID MA MD ME MN NH NJ NY PA PR RI SD VA VI VT WI and WV As of May 23, 2017
