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Power Index Annuity®

The Power Index Annuity offers all the safety and guarantees of a fixed-rate annuity, but with the opportunity to benefit from higher potential earnings which could enhance the growth of your retirement savings. This is possible because the POWER Index Annuity offers you the opportunity to realize interest based on the positive performance of a stock-price index. Earnings linked to a stock-price index are subject to an Interest Rate Cap.

Features and Benefits Back To Top

Annual reset index annuity with interest credited up to the interest rate cap. Each year, the credited interest is based on the difference between the index value at the start of the contract year and the index value at the end of the contract year, subject to the interest rate cap. The new index value is reset annually and becomes the starting point for interest crediting during the next year. This means that any interest credited to your annuity each year is locked in. Once you earn it, you can never lose it even if the index value declines.

One 10% penalty-free withdrawal per year after the first policy year. After the first contract year, you can withdraw up to 10% of your previous anniversary annuity value without charges. Amounts withdrawn do not earn any future indexed credits, including those that would have been credited at the end of the policy year of withdrawal. What this means is that if an emergency arises, you have access to your funds. If not, your funds will continue to grow tax deferred until retirement. Withdrawals taken prior to 59½ may be subject to a federal income tax penalty.

No up-front sales fee or administrative charges. You receive interest on 100% of each purchase premium you make.

Choice of income payment options. It’s important for you to be able to meet the needs of your family. That’s why, when you begin receiving the income your annuity has built up, there are a number of ways for you or another designated payee to receive income.

Choice of seven-year or nine-year withdrawal charge period. The nine-year withdrawal charge schedule offers you a higher interest rate cap so the owner can have greater interest earning potential. The interest rate caps are declared annually and guaranteed for one year.

$10,000 minimum single premium for nonqualified and tax-qualified annuities. Begin your annuity with as little as $10,000, up to a maximum contribution of $1 million (without prior company approval).

Guidelines Back To Top

Withdrawals in excess of permitted amounts are subject to a declining withdrawal charge. An early withdrawal charge will be deducted from any amount withdrawn in excess of permitted free amounts for a period of either seven or nine years, depending upon the term selected. If the annuity value is withdrawn on a date other than a policy anniversary, that portion of the annuity value will not participate in any interest crediting for the policy year in which the funds were withdrawn. Withdrawals taken prior to age 59½ may be subject to a 10% federal income tax penalty. 

Seven-year early withdrawal schedule: Withdrawals in excess of permitted amounts are subject to a seven-year withdrawal charge schedule of  9%, 8% 7%, 6%, 5%, 4%, 3% and thereafter 0% from the contract date.

Nine-year early withdrawal schedule: Withdrawals in excess of permitted amounts are subject to a nine-year withdrawal charge schedule of  9%, 8% 7%, 6%, 5%, 4%, 3%, 2%, 1% and thereafter 0% from the contract date.

The Power Index Annuity is a long-term tax-deferred retirement product of the life insurance industry. The Power Index Annuity is not a security and does not participate in any stock or equity investment. Tax qualified contracts such as IRAs, 401(k)s, etc., are tax deferred regardless of whether or not they are funded with an annuity. If you are considering funding a tax qualified retirement plan with an annuity, you should know that an annuity does not provide any additional tax-deferred treatment of earnings beyond the treatment by the tax-qualified retirement plan itself. However, annuities do provide other features and benefits such as income options. Not available in some states, and policy provisions may vary by state.

Policy form V201-5, ECR-805E, VR342-05

Buyer's Guide Back To Top

The Buyer's Guide is required by many states for clients who purchase fixed annuity IRA and nonqualified Plans. It provides a general overview of fixed annuity products.

Buyer's Guide for clients in the following states: AK, AR, FL, GA, OR, RI and WV.

Buyer's Guide for clients in the following states: AL, AZ, CO, HI, IA, ME, MO, MT, NC, ND, NH, NJ, NM, NV, OH, OK, SC, TX, UT, and VT.

Kentucky Buyer's Guide

Wisconsin Buyer's Guide

Note: Buyer's Guides are not required in CA, CT, DE, ID, IL, IN, KS, LA, MD, MA, MI, MN, MS, NE, NY, PA, SD, TN, VA, WA, and WY.