1 Contract is permanent and does not have a cash value.
2 Interest earnings grow tax deferred until received. Distributions from non-qualified annuities and IRAs are subject to ordinary income tax. Distributions from a Roth IRA are tax free after age 59½ if the plan has been established for at least five years. Withdrawals prior to age 59½ may incur a 10% IRS penalty tax in both Traditional IRA and Roth IRA plans and in non-qualified annuities.
An immediate annuity is permanent. An owner has no access to the premium, which converts to a stream of income payouts. There is no cash value, no death benefit and can't be surrendered. Terms, such as the payment amounts and frequency, cannot be changed, unless commutation is available and elected. An immediate annuity should not be purchased if access may be needed to any of the premium for living expenses or other purposes.
Payouts end at annuitant death unless certain period or installment refund option elected. Life contingent payout may be less or more than premium based on length of annuitant(s) life. Life and Temporary life payouts provide no benefit on or after the death of the annuitant(s). If a payout for life or for two lives is selected, whether the payouts received are less than or greater than the premium paid will depend on how long the annuitant(s) lives. If death occurs after any guaranteed income payouts have been made, no additional payments will be made to the beneficiary.
Annuity products are not bank products, are not a deposit, are not insured by the FDIC, nor any other federal entity, have no bank guarantee, and may lose value.
Payment of benefits under the annuity contract is the obligation of, and is guaranteed by Columbus Life Insurance Company. Guarantees are based on the claims-paying ability of Columbus Life Insurance Company. Products are backed by the full financial strength of Columbus Life Insurance Company.
Earnings and pre-tax payments are subject to income tax at withdrawal. Withdrawals may be subject to charges. Withdrawals of taxable amounts from an annuity are subject to ordinary income tax, and, if taken before age 59½, may be subject to a 10% IRS penalty. Interest rates are declared by the insurance company at annual effective rates, taking into account daily compounding of interest.
Columbus Life is licensed in the District of Columbia and all states except New York.
Neither Columbus Life, nor its agents, offer tax advice. For specific tax information, a tax attorney or advisor should be consulted. The information provided is for educational purposes only.
Single Premium Immediate Annuity Contract Series CL-21 issued by Columbus Life Insurance Company. Product and feature availability, as well as benefit provisions, vary by state.