Great American’ Safe Return is a modified single premium fixed-indexed annuity that has a 10 year surrender charge period. Safe return provides annuitants with the safety of indexed strategies, guaranteed premium, and an annuity opportunity for protection and growth. The annuity is not available in NY PR and VI as of July 20th 2015. The terms for the annuity commence at the 6th and 20th of each month. If a policy holder makes payments before the beginning of a term, the funds are held in a purchase payment account. These funds earn daily interest until a term begins.
Safe return Features
Return of Premium Rider
This is one of the additional benefits of the safe return annuity whereby there is a guaranteed return of premium. The amounts payable on surrender or upon death are the greatest between the guaranteed minimum surrender value, the surrender value or the return of premium value.
Minimum and Maximum Premiums
The annuity offers a free look period of 10 days which may vary from state to state. This is in addition to a rate lock protecting amounting to 7 days. The minimum single premium an annuitant can make is $25,000 qualified or non-qualified. The maximum single premium non-qualified premium varies by age. It stands at $1,000,000 for all persons up to the age of 75. This reduces to $750,000 for those aged between 76-80 years and $500,000 for those aged 81 years and above. Flexible premiums are not accepted with Safe Return.
Additional premiums can be accepted within the first 2 months of the annuity contract.
Issue Age
The annuity is issued for persons between 0-85 years of age. There are age restrictions for persons qualified and non-qualified persons above 95 years.
Availability of Riders
There are three riders available with Safe Return, IncomeSecure, IncomeSustainer Plus and Inheritance Enhancer. The first two are unavailable in NY while the third isn’t available in NJ and OR.
Annuitization
This annuity has three annuitization options viable within the first year. There is the income for a fixed period, single life annuity and joint and one half survivor. Any outstanding balance on loans will be subtracted from the amount payable.
Free Withdrawals
This annuity allows policy holders to make 12 free withdrawals each limited to a maximum 10% the value of the annuity. 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 $500 and $5,000 respectively. Above the 10% free withdrawal amount, additional withdrawals will be charged at 10% of the value for the first year. The rates will reduce to 9%, 8%, 7%, 6%, 5%, 4%, 3.00%, 2.00% and 1% for the tenth year.
Minimum Distributions
Each tax-qualified contract should be in compliance with the RMD rules set out in the endorsement. For this annuity the rules generally stipulate that distributions will have to be made from the age of 70.5 years onwards.
Systematic Withdrawals
Systematic withdrawals are available with Safe Return. These have withdrawal frequencies of monthly, quarterly, semi-annually or annual basis. The minimum amount that can be withdrawn is $100 and the minimum account value is $5000
Terminal Illness Waiver
If a policyholder has a diagnosis rendered more than a year after the effective date of the annuity contract, an amount up to 100% of the account value can be withdrawn in which case the policy holder will not incur an early withdrawal charge provided the owner or joint owner’s terminal illness has a prognosis of 12 months or less. For this annuity, the rider can only be used once. For SecureGain 5, this is not available in MA
Extended Care Waiver
If an owner completes the first year and is confined to a nursing home for at least 90 days (consecutive) he/she can make withdrawals up to the full amount without incurring withdrawal charges.
Death Benefit
The death benefit amount will be reduced by the amount of any rider fees, charges and tax. Should the annuitant die, the greater of the GMSV and the account value will be paid. If there is a spouse who is a joint owner of the annuity or a beneficiary, they will become the owner of the annuity.
