Sentinel Security’s Personal Choice Annuity 7 is a single premium deferred annuity that has a seven-year fixed rate and a 7-year surrender charge period. It is a multiple year guaranteed annuity (MYGA). Annuitant’s are given a 1st year interest rate of 3.4% that’s guaranteed for 7 years. The annuity also provides clients the added flexibility of selecting from a wide range of optional riders. These can eliminate MVAs and surrender charges.
Personal Choice Annuity 7 Features
Rider benefits
The annuitant selects the riders they require without having to pay for the features that they will never require. The optional riders include; Required minimum distribution, accumulated interest withdrawal, death benefit feature, terminal illness care, preferred ten percent withdrawal and 72(t) free withdrawal.
End of guarantee period
30 days before the end of the period, the MVA and surrender charges will not apply. During renewal, the surrender charges will be 5% unless the annuitant is aged 94 and above. The MVA rolls over into any renewed guarantee period.
Minimum and maximum premiums
The minimum single premium for this annuity is $2,500 while the maximum single premium is $1,000,000. Flexible premiums are not allowed with the Personal Choice Annuity 7 over the entire product life.
Issue age
The Personal Choice Annuity 7 annuity is issued to people aged between 0-85 years for the policy owner. Annuitants aged between 86 and 90 years are expected by the company to purchase the death benefit rider.
Free withdrawals
This annuity allows policy holders to make free withdrawals each limited to a maximum 10% the value of the annuity on any contract year. The withdrawal is on a non-accumulation basis. Holders do not have the option to withdraw the accumulated interest only unless they purchase a rider.
Above the 10% free withdrawal amount, additional withdrawals will be charged for early withdrawals. The charges vary from one state to the other and from one age band to the next. The company however has this information for all ages and states and their associated withdrawal charges. However, for most states, the charges start at about 9% for the first year and gradually reduce to about 1% for the tenth year. This is with the free withdrawals rider that costs 0.08%.
Accumulated interest rider
The accumulated interest withdrawals rider allows the annuitant to withdraw the interest amount without incurring a withdrawal charge or MVA. The cost of the rider stands at 0.08% of the value.
Vesting Schedule
There is no bonus recapture or vesting schedule available with this annuity.
Minimum distributions rider
This rider allows the annuitant to withdraw the RMD without incurring an MVA or surrender charge. The rider costs 0.16%.
Death benefit rider
This makes sure that at the annuitant’s death, the benefit paid out will equal the total contract value and all charges and MVAs will be waived. The rider costs 0.35%.
Terminal Illness Rider
Allows the annuitant access to some or all their funds should they be diagnosed with a terminal illness or be confined to a nursing home. The rider costs 0.15%.
Systematic withdrawals
Systematic withdrawals are not available with the Personal Choice Annuity 7
State specific
This product was not available in AR AZ CA CO GA HI IA ID IL KS MT NC ND NE NM NV OK OR PA SD TX UT WY as of January 10, 2017.
