Finding the best way to accumulate wealth for retirement can be challenging. Premium Bonus Annuity is a financial solution that can help you have a specific amount of money in the future to maintain your post-retirement quality of life. You take charge of your money by deciding the frequency of your contributions, and whether to receive the accumulated value of the annuity in one lump-sum amount or distributed as income payments for a chosen period. You can also choose to receive income and never touch the principal.
Benefits of Premium Bonus Annuity
A Premium Bonus Annuity may be a practical solution to help you prepare for retirement.
Interest earnings are tax-deferred until your money is withdrawn or you begin to receive income payments.
Guaranteed income payments can be paid for your lifetime or for a specified number of years.
Each contribution you make receives a premium bonus which is credited to your account the day your funds are received.
The minimum initial payment is $15,000. You can contribute additional payments of $1,000 or more at any time after your contract is issued.
This policy can accept up to $750,000 of total premiums paid for the life of the contract.
A Premium Bonus Annuity may be best suited for individuals who want a flexible premium and are looking for a high-end annuity product with a high initial premium requirement. This annuity could benefit individuals with a variety of needs:
You are nearing retirement and seek a solution that will reward your large initial contribution.
You are looking for guarantees as you prepare to retire. You seek a retirement solution offering a guaranteed lifetime income that can continue for the remainder of your life.
You and your spouse are empty nesters. You have saved carefully for retirement and now seek to diversify your portfolio with a product that guarantees you'll never lose your principal.
With a Premium Bonus Annuity, money is compounded in not just one but three ways: the principal earns interest, the interest earns interest and the money that would otherwise have been paid in taxes remains in the annuity and earns interest, assuming there are no withdrawals.
The minimum initial contribution for the Premium Bonus Annuity is $15,000. Additional contributions of $1,000 or more can be made at any time. Each contribution receives an interest rate declared by Western & Southern Life. All premiums also receive a premium bonus. Issue ages are 0-85 (applicable to both owner(s) and annuitant).
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Learn about our flexible premium deferred annuity, and determine if it's the best choice for your needs.
Overall, Americans are losing an estimated $24 billion every year in matching employer 401(k) contributions. (CheatSheet, 10 Retirement Statistics That Will Scare the Crap Out of You, Dec. 25, 2016.)
55% of retirees stopped working earlier than expected. Health was the number one reason, followed by job loss. (CheatSheet, 10 Retirement Statistics That Will Scare the Crap Out of You, Dec. 25, 2016.)
36% of American adults over 65 are completely dependent on Social Security. (The Motley Fool, 20 Retirement Stats That Will Blow You Away, Jan. 26, 2016.)
The average out of pocket medical costs for a 65-year-old couple will be $218,000 over the next 20 years. (The Motley Fool, 20 Retirement Stats That Will Blow You Away, Jan. 26, 2016.)
1 year in a skilled nursing facility can cost more than $200,000. (The Motley Fool, 20 Retirement Stats That Will Blow You Away, Jan. 26, 2016.)
Many adults don’t save for retirement because they say saving for retirement is like saving for a stranger. (MarketWatch, “This is why most people don’t save for retirement,” Oct. 22, 2016)
Other reasons include
I don’t make enough money
My employer doesn’t offer a 401(k)
My employer doesn’t offer a 401(k) match so it’s not worth it
Draft Your Financial Game Plan With Us Please see important information following this video.
Hi, I am Cris Collinsworth and I am here to remind you of three strong points to keep in mind when you are drafting your financial game plan.
First, financial strength is a key player. The strength of Western and Sothern Financial Group speaks for itself. Western and Southern has a heritage dating back to 1888, an impressive capital position, and stability demonstrated throughout challenging economic times.
Second, is industry ratings. The insurance companies that I am talking about are proud of their industry ratings, such as an A+ from A.M. Best and a remarkable 96 out of 100 Comdex ranking.
Third, and just as important, is consistency. Consistency that comes from steady deep-seeded conviction in our products and services.
You just can’t beat this combination.
Western & Southern Financial Group
Products issued by member companies of Western & Southern Financial Group, Inc., Cincinnati, Ohio.
A.M. Best rating of A+ Superior for Superior ability to meet ongoing insurance obligations (second highest of 16 ratings; rating held since June 2009).
Comdex ranking of 96 out of 100. The Comdex Ranking is a composite of the financial strength ratings as determined by Standard & Poor’s, Moody’s, A.M. Best, and Fitch ratings. It ranks insurers on a scale of 1 to 100 (where 1 is the lowest) in an effort to reduce confusion over ratings because each rating agency uses a different scale.
Ratings are subject to change from time to time. The ratings shown here are correct as of 01/31/2017.
Major rating agencies issue public ratings on the member insurance companies affiliated with Western & Southern. Financial strength ratings apply to the individual member insurance companies affiliated with Western & Southern.
Life insurance and annuity products are not bank products, are not a deposit, are not insured by the FDIC or any other federal entity, have no bank guarantee and may lose value.
Western-Southern Life Assurance Company, Cincinnati, Ohio, operates in DC and all states except AK, ME, NH, NY and RI. Flexible Premium Deferred Annuity contract series 0505-50001-I WSA issued by Western-Southern Life Assurance Company. These policies and benefits may not be available in all states, and benefits may vary by state.
Payment of benefits under the annuity contract is the obligation of, and is guaranteed by Western-Southern Life Assurance Company. Guarantees are based on the claims-paying ability of Western-Southern Life Assurance Company. Products are backed by the full financial strength of Western-Southern Life Assurance Company.
Earnings and pre-tax payments are subject to income tax at withdrawal. Withdrawals may be subject to charges. Withdrawals from an annuity are subject to ordinary income tax, and, if taken before age 59½, may be subject to a 10% IRS penalty.
Neither Western-Southern Life Assurance Company, nor its agents, offer tax advice. For specific tax information, consult your attorney or tax advisor. The information provided is for educational purposes only. Interest rates are declared by the insurance company at annual effective rates, taking into account daily compounding of interest. Product and feature availability, as well as benefit provisions, vary by state.
An annuity is a long-term financial vehicle designed for retirement. An insurance company accepts premiums and provides future income or a lump-sum amount to the contract owner by contractual agreement.
Distributions to beneficiaries from non-qualified annuities and IRAs are subject to income tax as received.
Surrender charges will be applied if amounts are taken out in excess of the free withdrawal provisions.
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