Safeguard Plus
The Safeguard Plus Annuity offers a reassuring blend of predictability and flexibility, perfect for you if you're planning for a better tomorrow. With this product, you enjoy a guaranteed fixed rate of interest over a specified period, protecting your savings from market risks. Its tax-deferred growth ensures you only pay taxes during withdrawal, maximizing your savings potential. Plus, you'll have access to a portion of your funds in case of unexpected healthcare costs or financial obligations.
This annuity shines in its simplicity, designed with real people in mind. Notably, it provides the option of converting your annuity into guaranteed lifetime payments, ensuring you'll always have a source of income. And for those interested in leaving something behind for their loved ones, it carries a death benefit, providing a legacy for your beneficiaries. The Safeguard Plus is truly a robust annuity option that ticks all the right boxes for a confident, secure future.
Safeguard Plus
About Product
MYGA Interest Rates
| Term |
Rate
Annual percentage yield (APY)
earned over the investment term |
|---|---|
| 3 years | 5% |
| 5 years | 5.4% |
- A straightforward way to safely grow your savings on a tax-deferred basis
- A guaranteed fixed rate of interest over a pre-determined period of time
- Protection from market risk
- Options for accessing a portion of your funds should you require them to satisfy requirement minimum distributions (RMDs) or other financial obligations
- Full access to your account for unexpected health care costs, namely qualifying nursing home care, or in the event of terminal illness
- The option of turning your annuity into guaranteed payments for life
- The ability to provide a legacy for loved ones through a death benefit. Designed for real people and real life, these simple-to-understand annuities can help achieve your unique financial goals while making it easier for you to adapt as your needs change and your life evolves.
You may withdraw the accumulated interest earned in any year without any withdrawal or Surrender Charges or Market Value Adjustment (MVA) being applied. Withdrawals must be a minimum of $100. On each policy anniversary, accumulated interest is reset to zero.
Penalty free withdrawal window
During the first 30 days of a Multi-Year Interest Rate Guarantee Period, you may take a penalty-free partial or total withdrawal of your principal and earned interest without being subject to a surrender charge or MVA.
Liquidity
After the contract has been in force for thirty (30) days, you may withdraw a portion of your policy value by making a partial surrender. All partial surrenders (including required minimum distributions from qualified retirement accounts) will be reduced by any applicable surrender charges and MVA. The amount of a partial surrender must be at least one hundred dollars ($100). The remaining Accumulated Value after any partial surrender must be at least two thousand dollars ($2,000). A 10% IRS penalty may apply to all amounts withdrawn before the owner reaches age 59½.
Market Value Adjustment (MVA)
An MVA will apply to any full surrender or partial withdrawal that exceeds the maximum penalty-free withdrawal during the guarantee period. Depending on the direction interest rates move, the MVA may increase or decrease benefits available under the contract. The MVA does not apply to the death benefit or the guaranteed surrender value.
Death Benefit
If you are the sole owner of your annuity, in the unfortunate event you pass away during your contract term, your beneficiary(ies) will be paid a death benefit equal to the Accumulation Value of your Farmers Safeguard Plus MYGA (your initial premium plus interest credited less any deductions for prior partial surrenders of your annuity). No surrender charges or MVA will be assessed, and your beneficiary does not need to wait until the end of the contract term to access to the money. A beneficiary may choose to receive the death benefit in either a lump sum or any of the available annuitization options.
Riders
| Name | Inbuilt | Fee |
|---|---|---|
| 5% Free Withdrawal Rider | No | 0.10% rate reduction |
| Enhanced Benefit Rider | No | 0.10% rate reduction |
Waivers
Death
No surrender charges or MVA will be assessed, and your beneficiary does not need to wait until the end of the contract term to access to the money.
Annuitization
Creating an income stream for life can help you minimize worry about outliving your assets. On your annuity date, you have the option of annuitizing your contract, or turning your annuity into scheduled payments for life. The annuity date is set in your contract.
Surrender Window
During the first 30 days of a Multi-Year Interest Rate Guarantee Period, you may take a penalty-free partial or total withdrawal of your principal and earned interest without being subject to a surrender charge or MVA.
- A.M. Best B++
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