Fixed annuity review and rates

Guarantee Platinum

The FG guarantee-Platinum is a Single Premium Deferred Annuity with a Market Value Adjustment. The initial minimum contribution is $20,000 qualified and non-qualified. Withdrawal of interest earnings is available.

Systematic withdrawals are an option. Surrender charges vary based on the rate term chosen and are waived in the event of annuitization, death, entrance into a hospital or nursing home, diagnosis of a terminal illness, or unemployment. There is a 30-day window at the end of each guarantee period which waives MVA and surrender charges. Withdrawals and taxable distributions may be subject to ordinary income tax and if made prior to age 59 1/2, may also be subject to a 10% federal income tax penalty. Early surrender charges may also apply.

Surrender charge schedule
A competitive initial interest rate is guaranteed for the 3-year guarantee period. After the initial guarantee period, the annuity will immediately enter into a new guarantee period crediting a renewal fixed interest rate. At the end of any guarantee period, contract holders will have a 30-day window to withdraw some or all of their account value free of surrender charges and MVA. Beyond the 30-day window, a new set of surrender charges, identical to those in the initial guarantee period, will apply. Unless there is a full surrender, this renewal process will continue until annuitization or death. 
The surrender charge will be 9% in the first year decreasing throughout each rate guarantee period by 1% each contract year. Upon renewal into a new rate guarantee period, surrender charges will reset to 9%, and will follow the identical decreasing pattern through each subsequent guarantee period.
For the following states, surrender charges and MVA continue to decline over 10 years and do not begin again at 9%: CA, CT, ID, NC, NJ, OK, VT

Plan types
TSP funds have to be rolled into an IRA.

Annuity Options
You must begin receiving annuity payments on the Maturity Date. The Maturity Date is fixed at the contract issue and is the greater of the contract anniversary following the annuitant's birthday at Age 90 and 10 years from the date of issue. The following seven Annuity Options are available: 
  1. Income for a Fixed Period 
  2. Life Income with a Guarantee Period 
  3. Life Income 
  4. Joint and Contingent Life Income 
  5. Joint and Survivor Income with Guarantee Period 
  6. Joint and Survivor Life Income 
  7. Life Income with Lump Sum Refund at Death 
Penalty-Free Withdrawal 
Surrender charges and MVA (as applicable) will not apply to any partial withdrawal amounts of accumulated interest, required minimum distributions, or any payments received under the Terminal Illness Rider or Nursing Home Rider (described below).  If you renew the annuity after age 91 you will not pay withdrawal charges for any withdrawal from the renewed annuity.  At the end of any guarantee period, contract holders will have a 30-day window to withdraw some or all of their account value free of surrender charges and MVA. 

Market Value Adjustment (MVA)
Any time a withdrawal incurs a surrender charge, an MVA will be made. The MVA is based on a formula that takes into account changes in the U.S. Treasury yields since the contract was issued. Generally, if treasury yields have risen, the MVA will decrease the surrender value; if they have fallen, the MVA will increase the surrender value.
The MVA may be subject to a ceiling in PA.

Death Benefit
If the owner dies before the Maturity Date, the ownership of the Policy passes to the person(s) living in the order as follows: 
  • Surviving joint owner, if any;
  • Beneficiary;
  • Contingent beneficiary;
  • Estate of the last owner to die. 
No guarantee of principal or return of premium feature on this product

Interest Rates

Guaranteed Years Surrender Years Guaranteed Yield Current Yield
3 3 4.25% 4.25%
5 5 4.6% 4.6%
7 7 4.75% 4.75%
3 3 4.25% 4.25%
5 5 4.6% 4.6%
7 7 4.75% 4.75%
Fidelity & Guaranty Life Insurance Company
Founded: 1959
A.M. Best: A-
Fitch: A-
S&P: A-
Moody's: Baa1
Carrier details
Free withdrawal
Types of funds
Non-Qualified, 401k, Profit Sharing, IRA, Pension, IRA Rollover, TSA 403b, IRA-Roth, 1035 Exchange, Inherited IRA, NQ Stretch, and TSP