The minimum premium required to open a GIA policy is $5,000. Anything over $1,000,000 requires a Home Office approval prior to application.
Yes, additional premium may be added to the annuity during the first contract year.
Interest on the Initial Purchase Premium is calculated based off a participation rate of SOFR and recalculated every 3 months. The participation rate is guaranteed for the initial guarantee period of 1 years. After the initial guarantee period, the participation rate is subject to change on each contract year and is guaranteed for the contract year. Interest on Subsequent Purchase Premium is a fixed rate during the initial guarantee period of 1 years. After the initial guarantee period, Subsequent Purchase Premium will earn interest the same as the Initial Purchase Premium.
The Secured Overnight Financing Rate, or SOFR, is a benchmark rate used throughout the world. The SOFR rate is published daily by the Federal Reserve Bank of New York and is based on overnight transactions in the U.S. Treasury repurchase agreement (repo) market.
During the first contract year of the Surrender Period, the RMD may be with withdrawn without any penalty on IRA funds. After the first contract year, 10% of the Purchase Premium may be withdrawn without any penalty each contract year. No penalties apply to any distribution or surrender after the Surrender Period.
Durring the Surrender Period, any withdrawal in excess of the penalty free amount will have Surrender charges, Market Value Adjustment and any non-vested premium bonuses apply. When you are applying for the GIA annuity, you may elect to have either a 10 year surrender period or a 14 year surrender period.
Once the surrender period is over there are no surrender charges, Market Value Adjustment, or any non-forfeiture of premium bonus. Your annuity will continue to earn interest defered until a death benefit is paid, withdrawal or surrender is processed, or request is made for guaranteed income to begin depending on the rider that is selected.
The GIA annuity does allow for withdrawals to be made without any penalty if you are confined to a Nursing Home for 90 consecutive days or been diagnosed with a medical condition which a physician certifies has reduced your life span to 12 months or less. *Restrictions may apply.
There are three riders that are available to be elected with the GIA annuity. One rider must be elected at the time of application. The three riders are:
The issue ages are dependent on the rider that is elected. The issue ages for each rider are as follow:
If the Legacy Benefit Rider or the Accumulation Benefit Rider are elected at the time of application, a premium bonus is deposited to the Accumulation Value and the Benefit Base Value.
Legacy Benefit Rider
Owner's Issue Age | 10 Year Surrender Period | 14 Year Surrender Period |
Under 76 | 8% | 8% |
76-80 | 6% | 7% |
81-85 | 1% | 2% |
Accumulation Benefit Rider:
Owner's Issue Age | 10 Year Surrender Period | 14 Year Surrender Period |
Under 76 | 8% | 10% |
76-80 | 6% | 7% |
81-85 | 6% | 6% |
*If the Guaranteed Lifetime Withdrawal Benefit Rider is elected, an 8% bonus is deposited to the Income Account Value. No Premium Bonus is deposited to the Accumulation Value with this rider.
A death claim is paid when any owner passes away. Each beneficiary would need to complete the Claim Form.
The entire Accumulation Value is paid to the beneficiary(ies) at time of death. Each beneficiary is able to elect one of the following options:
* Please see Legacy Benefit Rider and Accumulation Benefit Rider Inserts for more information regarding the Legacy Benefits.
With both the Guaranteed Lifetime Withdrawal Benefit Rider and the Accumulation Benefit Rider, the owner must be at least 50 years old before they may begin income payments.
Yes, after a waiting period, if you are ever unable to perform two of the six activities of daily living, you may request to double your income payments for up to 5 years. After 5 years, the income payments will go back to your original guaranteed amount.