This is a MYGA that has a seven-year surrender period. It is not available in PR and VI. The annuity is a single premium deferred type and thus additional premiums are allowed during the first 6 months of the contract. The SecureOption Focus 7 is intended for long term financial accumulation goals and may thus not be suitable for short term objectives.
The annuity has three bands, the low band, medium band and high band variants. F
SecureOption Focus 7 Features
Low, medium and High Band
The low band variant credits your annuity with a 1st year interest of 2.3% that is guaranteed for seven years. The medium and high bands credit the annuity with 2.5% and 2.6% interest rates.
Annuitization
After the end of the first year, the value of the SecureOption Focus 7 can be turned into an income stream. There are 10-20 years available for period options, single life options and joint life options a certain percentage is selected and continues upon the death of the first individual.
Return of premium rider
The amount of the surrender value under this annuity is guaranteed to be equal to the sum of the purchase payments less withdrawals. However, for withdrawals carried out under the age of 59.5, a 10% IRS tax may be incurred.
Minimum and Maximum Premiums
The minimum single premium for this annuity is $10,000 while the maximum single premium is 1,000,000 $. The FIA allows premium additions up to a maximum $1,000 for the first six months. Flexible premiums are also allowed with the SecureOption Focus 7 over the entire product life. The amounts apply equally under the qualified and unqualified status. The FIA provides a 20 day free look up period and a 60 day rate lock protection period.
The annuity also provides for market value adjustment
Issue age
SecureOption Focus 7 is issued to people aged between 0-88. This applies to the owner of the annuity and not the annuitizer. The age restriction for annuitization is 95 years.
Rider availability
There are no riders available with this annuity.
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. Holders can also withdraw the interest amount only if they wish to. The minimum withdrawal amount is $250 and the minimum account value is $1,000.
Above the 10% free withdrawal amount, additional withdrawals will be charged for early withdrawals. The charges start at 7% for the first year and reduce gradually as follows: 7%, 7%, 6%, 5%, 4% and 3% in year 7
Death benefit
The full account value will be paid upon the death of the annuitant.
Extended Care Waiver
For this annuity, any requested amounts will qualify under several waivers. A health care waiver will require at least 90 days of confinement or 6o days in NY.
