The SecureOption Choice fixed deferred annuity is a simple product designed to help everyday people plan for a financial future without the fear of market loss. It offers competitive rates, attractive liquidity features and a range of guarantee periods.
SecureOption® Choice
A multi-year guaranteed annuity
Overview
Product highlights
- Max issue age 90
- Four initial guarantee periods: 3, 5, 7, and 9 years offering competitive rates
- Automatic renewal to one-year periods which are not subject to deferred sales charge or Market Value Adjustment
- Surrender charge aligned with the guarantee period
- Rate banding at $100,000 (when available)
- 10% free annual withdrawal after the first year
More about SecureOption Choice
For clients who want the safety and benefits of a fixed deferred annuity
Certainty
Clients will know how much they’ll earn and what the value of their annuity will be at the end of the guarantee period, since they lock in an interest rate for the guarantee period they select.
Tax-deferral
Clients won’t pay taxes on gains until time of withdrawal. This keeps more money in their contract and compounding over time than if gains were reduced annually by taxes.
Free annual withdrawal
Up to 10% of the previous contract anniversary value is available for clients to access without penalty during the surrender charge period.1
1. Free withdrawal not available in first contract year or upon full contract surrender, except in California.
Product details
Issue age maximum
90 for either owner and/or annuitant
Plan types
Nonqualified; IRA; Roth IRA
Purchase payment
- Minimum: $25,000
- Maximum: $2 million
- Additional purchase payments: N/A
Interest rate guarantee
Initial guarantee: 3, 5, 7 or 9 years
Renewal guarantee: Renewal rate declared annually for one-year periods
Minimum rate guarantee: Set at contract issue and guaranteed for life of contract (declared minimum rate never lower than 1%)
Rate bands: $100,000 (when available)
Withdrawals
Minimum: $250
Systematic: $250 minimum available monthly, quarterly, semi-annually or annually
Surrender charge (duration equal to initial guarantee period)
3-year (% = 9, 8, 7, 0)
5-year (% = 9, 8, 7, 6, 5, 0)
7-year (% = 9, 8, 7, 6, 5, 4, 3, 0)
9-year (% = 9, 8, 7, 6, 5, 4, 3, 2, 1, 0)
Market Value Adjustment (MVA) - (MVA does not apply in California)
Applied upon withdrawal/surrender/annuitization during initial guarantee period
Amount available without surrender charge or MVA
- 10% of prior contract anniversary value. Plus, Required Minimum Distribution in excess of 10%. Free withdrawal not available in first contract year or upon full contract surrender (except in California).
- After first contract anniversary, amounts qualifying under the Hospital, Medical Care and Terminal Condition Waiver
- Amounts annuitized (waiver does not apply to MVA), except in Florida
- Death benefit
Death benefit
Contract value
Annuity income options
Numerous fixed payout options available monthly, quarterly, semi-annually or annually
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Get startedAn annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to nonqualified distributions. Please consult a tax advisor for specific information. There are charges and expenses associated with annuities, such as surrender charges (deferred sales charges) for early withdrawals.
Guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company.
Some products and optional features may not be available in all states and features may vary by state. Not all products, features and optional benefits are available from all firms.
DOFU 7-2021
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