The Royal Choice 10 annuity by Royal Neighbors of America is a multiple year guaranteed annuity (MYGA) that has a ten-year fixed rate and a ten-year surrender charge period. It is a single premium annuity and additionally provides market value adjustment.
Royal Choice 10 Features
Rate Guarantee
The policy holder’s annuity will be credited with a guaranteed 3.05% interest for the first year. During the final thirty days of this period, the annuitant can withdraw all or some of the account value without incurring withdrawal charges or MVA. After this, a second guarantee period will start with the provided interest rate and market value adjustment.
All withdrawals made outside the aforementioned 30-day window will be subject to surrender charges and an MVA which may increase or reduce the total funds.
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 allowed with the Royal Choice 10 Annuity. The minimum and maximum single premium amounts apply equally under the qualified and unqualified status.
The annuity also provides for a free 30-day lookup period and 60 free days of rate lock protection. This may however vary by state.
Issue Age
The Royal Choice 10 annuity is issued to people aged between 0-85 years for the policy owner. Annuitants have an age restriction band ranging between 16 and 85 years. The age restriction for annuitization stands at 95 years.
Free Withdrawals
This annuity allows policy holders to make free withdrawals per policy year each limited to the interest earned on the account. The withdrawal is based on accumulation. The interest amount withdrawal is possible after a thirty day period.
Above the 10% free withdrawal amount, additional withdrawals will be charged for early withdrawals. The charges start at 9.00% for the first years and reduce gradually as follows: 8.00%, 7.00%, 6.00%, 5.00%, 4.00%, 3.00% and 2.00%, 1.00% and 0.5% for the tenth year.
Market Value Adjustment
The MVA applies to withdrawals carried out during the guarantee period. The adjustment increases or decreases the account value depending on prevailing market conditions. The adjustment does not affect partial free withdrawals or death benefits or any change to the account made during a 30 day window at the end of a guarantee period.
Systematic Withdrawals
Systematic withdrawals are not available with the Royal Choice 10 annuity.
Death Benefit
In the event of the annuitant’s death, the benefit paid is the value of the account with no MVA or surrender charge. If the owner of the annuity isn’t the annuitant, then upon the annuitant’s death, the owner becomes the annuitant unless they appoint a new annuitant within 60 days after the death.
State Specific
This product was not available in AK AL CA DE HI LA MA NH NY PR and VI as of September 9, 2015
