Heritage Income Advantage
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Highlights
Heritage Income Advantage is a single premium deferred fixed-indexed annuity (FIA) that provides growth potential with protection from market downturns. An FIA is purchased as part of your retirement strategy, but also offers the flexibility to access your funds. It includes an optional rider that provides a guaranteed income stream.
Owner/Annuitant Information and Restrictions
Owner/Annuitant Information and Restrictions
- Single Annuitant only.
- Single Owner: The owner and Annuitant must be the same person.
- Joint Owner: Joint Owners must be lawfully wedded spouses. The beneficiary will be, “Surviving Joint Owner.”
- Trust: Only one owner at a time. Trust cannot be a Joint Owner. Trust must be an agent for a natural person. Natural Person must be named as Annuitant.
- Grantor Trust: Trust Grantor must be the named Annuitant.
- Custodial (UGMA, UTMA): Minimum age for GLWB is 55.
- Inherited IRAs: Secure Act eligible beneficiaries only Secure Act Eligible Beneficiaries: Death of IRA owner on or after 1/1/2020: accepted beneficiaries: spouse, disabled, chronically ill, minors, not 10 years younger than the IRA owner, and trust created for the benefit of any of those listed above. Death of IRA owner before 01/01/2020: spouse and non-spouse beneficiaries. Not eligible for GLWB.
Available in states:
AL, AK, AZ, AR, CA, CO, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, and WY
|
Type
|
Fixed Index |
|---|---|
| Purpose | Lifetime Income |
|
Premium Bonus
|
7% |
|
Term
|
10 Years |
|
Surrender schedule
|
9.3%9.3%8.3%7.3%6.3%5.3%4.2%3.2%2.1%1% |
|
Free withdrawal
|
1st year: 0% 2nd+ year: 10% |
|
Market value adjustment
|
|
|
Return of premium
|
|
|
Launch date
|
04/01/2021 |
|
Minimum contribution
|
$25,000 |
|
Maximum contribution
|
$1,000,000 |
|
Max Age Qualified
|
80 |
|
Types of funds
|
Non-Qualified, IRA, IRA Rollover, IRA Transfer, SEP IRA, IRA-Roth, 1035 Exchange, and Inherited IRA |
Brochure
|
Open brochure |
Find out if the Heritage Income Advantage is the right product for you.
Withdrawal Provisions
Free Withdrawal
10% of your Beginning of Year Account Value is available for withdrawal, penalty-free, after the first contract year. The Free Withdrawal is not cumulative and must be taken in a single transaction per contract year. Free Withdrawals are taken from the Fixed Account unless otherwise specified by the owner. If any withdrawal is not fully paid from the Fixed Account, the unpaid portion will be deducted pro-rata from the Account Value held in all Index Accounts with the same term, starting with the shortest-term Index Accounts.
Required Minimum Distribution (RMDs)
RMDs can be taken penalty-free after the first six months and can be scheduled for systematic withdrawal, subject to terms. Withdrawal Charges do not apply to RMDs, even if in excess of the Free Withdrawal amount. RMDs may be scheduled for systematic withdrawal to be taken automatically on an annual, semi-annual, quarterly, or monthly basis. There is a $100 minimum for systematic withdrawals, and they must be paid by electronic transfer.
Death Benefit
The Death Benefit is equal to the greater of the Account Value or the Minimum Guaranteed Cash Surrender Value.
Spousal Continuation
If the owner dies and the sole, primary beneficiary is the deceased Owner’s spouse, the beneficiary may elect to continue the contract as the new Owner. The options available vary by rider phase and Owner type.
10% of your Beginning of Year Account Value is available for withdrawal, penalty-free, after the first contract year. The Free Withdrawal is not cumulative and must be taken in a single transaction per contract year. Free Withdrawals are taken from the Fixed Account unless otherwise specified by the owner. If any withdrawal is not fully paid from the Fixed Account, the unpaid portion will be deducted pro-rata from the Account Value held in all Index Accounts with the same term, starting with the shortest-term Index Accounts.
Required Minimum Distribution (RMDs)
RMDs can be taken penalty-free after the first six months and can be scheduled for systematic withdrawal, subject to terms. Withdrawal Charges do not apply to RMDs, even if in excess of the Free Withdrawal amount. RMDs may be scheduled for systematic withdrawal to be taken automatically on an annual, semi-annual, quarterly, or monthly basis. There is a $100 minimum for systematic withdrawals, and they must be paid by electronic transfer.
Death Benefit
The Death Benefit is equal to the greater of the Account Value or the Minimum Guaranteed Cash Surrender Value.
Spousal Continuation
If the owner dies and the sole, primary beneficiary is the deceased Owner’s spouse, the beneficiary may elect to continue the contract as the new Owner. The options available vary by rider phase and Owner type.
- Death before the Income Start Date: The spouse has the option to continue the rider, with no change in benefits.
- Death after the Income Start Date: If Joint Income was elected, with the deceased Owner’s spouse as the Joint Covered Person, the surviving spouse may continue the contract and continue receiving the Lifetime Income Amount. Otherwise, if the Covered Person is deceased, the spouse may continue the contract, but the GLWB will be terminated.
Allocation Accounts
| Name | Type | Rates |
|---|---|---|
| 1-Year Fixed Account |
Fixed
|
3%
Fixed
|
| 1-Year S&P 500 PTP Monthly Sum Cap |
Point to Point
Annual
Monthly sum
|
1.25%
Cap
|
| 1-Year S&P 500 PTP Participation Rate |
Point to Point
Annual
|
18%
Participation
|
| 1-Year S&P 500 PTP Cap |
Point to Point
Annual
|
2.5%
Cap
|
| 2-Year S&P MARC 5% PTP Participation Rate |
Point to Point
Biennial
|
80%
Participation
|
| 1-Year S&P MARC 5% PTP Participation Rate |
Point to Point
Annual
|
55%
Participation
|
| 2-Year SG Entelligent 6% VT PTP Participation Rate |
Point to Point
Biennial
|
80%
Participation
|
| 1-Year SG Entelligent 6% VT PTP Participation Rate |
Point to Point
Annual
|
55%
Participation
|
| 1-Year Morgan Stanley Dynamic US Equities PTP Participation Rate |
Point to Point
Annual
|
37%
Participation
|
| 2-Year Morgan Stanley Dynamic US Equities PTP Participation Rate |
Point to Point
Biennial
|
64%
Participation
|
Surrender schedule
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Penalty | 9% | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 1% |
Riders
| Name | Inbuilt | Fee |
|---|---|---|
| Heritage Income Advantage GLWB rider | No | 1.25% annually |
Waivers
Nursing Home
Unavailable in states: CA, and SD
Up to 50% of the account value is available penalyty-free after first contract year. If on a Physician’s written recommendation, the Annuitant is confined in an Eligible Nursing Home due to: medical necessity, the Annuitant being unable to perform two of the six Activities of Daily Living (ADL), or the Annuitant having a cognitive impairment. Nursing home confinement must last for 90 days before Annuitant is eligible for the benefit. The Waiver benefit is not available if the annuitant was confined to nursing home when the policy was issued.
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