Sentinel Security’s Summit Bonus Index is a Fixed indexed annuity with a 10 year surrender period. The annuity contains four separate indexing strategies. There is also an optional income rider that continues to compound for up to 20 years. There is an initial premium bonus of 4.5% in most states and 7.00% in a select few.
Summit Bonus Index Features
The annuitant selects the riders they require without having to pay for the features that they will never require. The optional riders include; Required minimum distribution, accumulated interest withdrawal, death benefit feature, terminal illness care, preferred ten percent withdrawal and 72(t) free withdrawal.
End of guarantee period
30 days before the end of the period, the MVA and surrender charges will not apply. During renewal, the surrender charges will be 5% unless the annuitant is aged 94 and above. The MVA rolls over into any renewed guarantee period.
Minimum and maximum premiums
The minimum single premium for this annuity is $10,000 for non-qualified persons and $5,000 for the qualified. The maximum single premium is $1,000,000. Flexible premiums are not allowed with the Summit Bonus Index over the entire product life. Annuitants are given a free lookup period of 30 days which may vary depending on state.
The Summit Bonus Index annuity is issued to people aged between 0-80 years for the policy owner and annuitant. The annuitization age is restricted to 100 years.
The annuity comes with the Guaranteed Lifetime Withdrawal Benefit Rider. The rider is however not available in CA FL IL NC PA TX UT and WA.
This annuity allows policy holders to make free withdrawals each limited to a maximum 10% the value of the annuity. The withdrawal is on an accumulation basis. Holders also have the option to withdraw the accumulated interest only after each year.
Above the 10% free withdrawal amount, additional withdrawals will be charged for early withdrawals. The charges vary from one state to the other and from one age band to the next. The company however has this information for all ages and states and their associated withdrawal charges. However, for most states, the charges start at about 9% for the first year and gradually reduce to about 1% for the tenth year.
Market Value adjustment
The changes in the account value from the MVA will depend on the MVA index rate. this could increase or reduce the account value depending on whether the index rises or falls.
At the end of the contract’s fifth year, the vested amount could be used to purchase one of three available settlement options without incurring MVA and surrrender charges. The options are Life income only, Life income with guaranteed period certain and period certain only.
If any joint owner dies before the annuity’s maturity date, the amount that the company pays to the beneficiary will be the death benefit. This will be the greater amount between the minimum guaranteed surrender value or the vested value. If there is a surviving spouse, they could elect to be the owner of the annuity.
Systematic withdrawals are available with the Summit Bonus Index only on a semi-annual frequency. The least amount that can be withdrawn is $250 while the minimum account value is $2,500.
This product was not available in CA FL IL NC PA TX UT and WA as of January 10, 2017.