Protective Life’s Protective Indexed Annuity II is a Fixed Indexed Annuity (FIA). There are various policy options available (5, 7, and 10), depending on the surrender charge duration. The annuity offers a provision for market value adjustment provision and allows additional premiums as long as these are not made after the first year of the contract. Like any other fixed indexed annuity, Protective Indexed Annuity II protects the premium while at the same time providing room for positive growth.
Protective Indexed Annuity II Facts
Return of premium rider (Money back guarantee)
This rider may be elected. If the annuity contract is surrendered before its maturity date, the proceeds in addition to the sum of all previous withdrawals will not be less than the entire purchase payments that were made to the annuity.
Minimum and maximum premiums
- The minimum single premium for this annuity is $10,000 while the maximum single premium is $1,000,000.
- Flexible premiums are not accepted with the Protective Indexed Annuity II Annuity.
- The annuity also provides for market value adjustment and free 10-day lookup period and a 60-day rate lock protection period. This may however vary by state.
Issue age
The Protective Indexed Annuity II is issued to people aged between 0-85 years for the policy owners and annuitants. The age restriction for annuitization stands at 95 years.
Free withdrawals
- Up to 10% of the contract value can be withdrawn each year without being subjected to any surrender charges.
- Above the 10% free withdrawal amount, additional withdrawals will be charged for early withdrawals. The surrender charge will be determined by the policy’s surrender charge duration and schedule.
Annuitization
The contract must be annuitized latest on the day of the contract anniversary after the oldest owner’s 95th birthday. This is called the annuity commencement date. Holders have various payment options they can choose from; Lifetime income, Period certain, Life with installment refund, Life with cash refund and Life with a period certain.
Systematic withdrawals
Systematic withdrawals are available with the Protective Indexed Annuity II. These can only be done on a monthly, quarterly, semi-annual, or annual basis.
Nursing home confinement waiver
This reduces the charges if the annuitant or their spouses are confined for at least 30 consecutive days after the contract’s first anniversary. This will also apply if the spouse has terminal illness.
Unemployment waiver
Withdrawals can be made from the account without incurring charges or penalties if the annuitant or their spouse become unemployed and; were employed at the date of issue, are unemployed on the date of withdrawal and have been unemployed for at least 60 consecutive days before claiming the waiver.
Terminal illness waiver
This waives the withdrawal charges and MVA if the annuitant is diagnosed with a terminal illness that will result in death in 12 months. The diagnosis must however be carried out by an approved physician.
Death benefit
The company subdivides this into three scenarios. If the annuitant dies before the contract’s maturity date, the death benefit will be the greater of the accumulation value and the GMV. If the beneficiary spouse survives the annuitant, they may elect to go on with the policy as the owner. If the annuitant dies after the maturity date, the payments continue to a surviving owner or the beneficiary under the existing annuity option.
State specific
If interested in this annuity from Protective Life, check with your annuity advisor or financial specialist to learn about availability in your state.
