Value Assurance is a fixed annuity with a one year fixed rate and a 9 year surrender charge period. It is a flexible premium tax deferred index annuity. The annuity offers a 2% bonus on premium payments for the first year and for each year between year 2 and year 5. During the first year, clients receive a 4.04% bonus comprised of a 2.00% interest rate and a 2% premium bonus.
NWL Value Assurance Features
Interest rate guarantee
The rate is guaranteed to never fall below 1%
The issue age restrictions stand at 0-85 years for qualified and non-qualified owners and 0-80 years for annuitants. The annuitization age is restricted to 95 years.
- Minimum for non-qualified payments – $5,000.
- Minimum for qualified payments – $2,000
- Maximum for qualified and non-qualified payments – $1,500,000.
- Flexible premiums and payroll deductions are permitted within the entire life of this annuity.
- Minimum added premium- $100 for qualified and non-qualified payments.
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 9.25% in the first year to 1.00% in the ninth year. Annuitants can also withdrawal the accumulated interest only but only after 30 days.
If the annuitant dies before the annuity date, the beneficiary receives the bonus value and the account value as a lump sum if they do not elect another payment option. If the annuitant dies on or after the annuity date, the beneficiary is paid all guaranteed amounts.
Clients can choose to receive the accumulated amount under a settlement scheme on the annuity date. Payments can be received under one of three available elections as the annuitant elects. A guaranteed rate of 1.25% will be used to calculate the annuity payments. The options include income for a specific number of years, income for as long as you and the joint annuitant live and income for as long as you live.
These are available on a monthly, quarterly, semi-annual or annual basis. The minimum amount one can withdraw from their account is $100. The minimum account value is $2,000. There is a 10% income tax on withdrawals made before the age of 59.5 years.