One of the annuity products offered by Great American Life Insurance is the Secure American. This is a tax-deferred type of annuity that allows policy holders multiple purchase payments within the first three years of their contract. The annuity has an early withdrawal charge that gradually drops to zero in the eighth year. Clients are allowed to make a 10% withdrawal without incurring penalties and this is applicable for 12 withdrawals.
Secure American Annuity Facts
Minimum and Maximum Premiums
The minimum single premium for this annuity is 25,000 $ while the maximum single premium is 1,000,000 $. In addition to this, additional purchase payments are permitted during the first three contract years but have a 5,000 $ limit.
Annuitization
If a policy holder annuitizes their contract for at least seven years after the first contract year, a certain amount will be added to the account value as bonus. This will equal one percent of the amount the policy holder annuitizes each completed year and will be limited to a maximum 10%.
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. Should one wish to withdrawal the interest amount only, one will have to do so after 30 days. The minimum withdrawal amounts and account values are $500 and $10,000 respectively.
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 on monthly, quarterly, semi-annually or annual basis. The minimum withdrawal amount will be $500 and the minimum account value shall remain at $1000. Life distribution options are available for the first contract year.
Loan Provision
The annuity allows a minimum loan amount of $1,000. However, the minimum balance reflecting the surrender value that must remain after a loan is$500 in addition to all collateral interest on loans outstanding to the annuity.
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more than a year after the effective date of the annuity contract, an amount up to 100% of the account value can be withdrawn in which case the policy holder will not incur an early withdrawal charge provided the owner or joint owner’s terminal illness has a prognosis of 12 months or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.
Death Benefit
Upon the annuitant’s death, the death benefit paid to a beneficiary will be a lump sum amount that’s equal to the cash value or the account value if the beneficiary chooses a settlement option provided within the contract.
State specific
This product was not available in AK MA NH NJ NV NY PA PR UT VI WA.
