Heritage Premier 5
Heritage Premier 5
About Product
MYGA Interest Rates
| Term |
Rate
Annual percentage yield (APY)
earned over the investment term |
|---|---|
| 5 years | 4.8% |
You can start your Heritage Premier annuity with a minimum premium of $10,000.
How Interest is Credited
Interest is credited and compounded daily. For the Guarantee Period you select, the interest rate will be credited for the entire period. At the end of the period, a new rate will be declared for the following contract year but will never be less than the Minimum Guaranteed Interest Rate of 0.15%. Once the Contract is issued, the Minimum Guaranteed Interest Rate will not change. Ask your agent for the current interest rate and Minimum Guaranteed Interest Rate.
Contract Values
The Accumulated Value is 100% of the premium and interest earned less any withdrawals. The Cash Surrender Value is the Accumulated Value less Surrender Charges and Market Value Adjustment (MVA). The death benefit is equal to the Accumulated Value.
Liquidity
After your contract has been in force for 30 days, you may make one Penalty-Free Withdrawal of 100% of the interest accumulated during the current contract year, subject to a minimum withdrawal of $500. Alternatively, Systematic Penalty-Free Withdrawals of interest accumulated during the current contract year may be taken monthly, quarterly, semi-annually, or annually, subject to a minimum withdrawal of $100.
Required Minimum Distributions (RMDs) from qualified plans are permitted without Surrender Charges or MVA and count towards your penalty-free withdrawal. RMDs are limited to the amount determined based on the Accumulated Value on the preceding December 31st.
There is a wide range of annuity settlement options from which you may choose, including fixed periods from 5-20 years, life with 5-20 years certain, and life income only.
A 10% IRS penalty may apply on amounts withdrawn before the owner reaches age 59½.
Market Value Adjustment (MVA)
The Market Value Adjustment is an amount by which we adjust the Accumulated Value. An MVA only applies when a Surrender Charge is deducted. The MVA may increase or decrease your Accumulated Value, depending on whether interest rates* have fallen or risen from the time of purchase. If interest rates have declined, your Accumulated Value could be higher. If interest rates have increased, your Accumulated Value could be lower. The MVA is not assessed on Death Benefits.
* For purposes of the MVA, interest rates are based on the ICE BofAML US Corporate 7-10 Year Effective Yield being published by the Federal Reserve Bank of St. Louis.
Renewal Feature
At the end of each Guarantee Period, you have the option to renew your annuity for future periods up until the Maturity Date of the contract. Renewal interest rates for each new Guarantee Period will be based on current rates at the time of renewal and may differ from the Initial Guaranteed Interest Rate.
At the end of each Guarantee Period and prior to the Maturity Date, you may choose one of these options by completing a form provided by Us:
- Renew this Contract into new Interest Rate Guarantee Period,
- Take a withdrawal with no Surrender Charge or MVA, and renew the remaining Accumulated Value into new Interest Rate Guarantee Period,
- Apply the Accumulated Value to a Payment Plan,
- Surrender the Contract with no Surrender Charge; or
- Exchange the Contract for a new contract on any annuity plan that We offer at the time. If you do nothing, the Contract will continue otherwise unaffected.
Riders
No Riders for Heritage Premier 5 annuity.
Waivers
Death
The MVA is not assessed on Death Benefits.
Nursing Home
You may make a one-time Penalty-Free Withdrawal of up to 10% (1st year) or up to 50% (2nd year or later) of your Accumulated Value if you are diagnosed with a covered impairment or treatment. This benefit is automatically added to the contract and is subject to all applicable terms of the contract. A signed statement from the Skilled Nursing Facility providing evidence of 90-day confinement is required.
Terminal Illness
You may make a one-time Penalty-Free Withdrawal of up to 10% (1st year) or up to 50% (2nd year or later) of your Accumulated Value if you are diagnosed with a covered impairment or treatment. This benefit is automatically added to the contract and is subject to all applicable terms of the contract. A signed statement from the physician providing evidence of diagnosis is required.
Surrender Window
At the end of each Guarantee Period and prior to the Maturity Date, you may take a partial withdrawal with no Surrender Charge or MVA, and renew the remaining Accumulated Value into new Interest Rate Guarantee Period or Surrender the Contract with no Surrender Charge.
Disability
You may make a one-time Penalty-Free Withdrawal of up to 10% (1st year) or up to 50% (2nd year or later) of your Accumulated Value if you are diagnosed with a covered impairment or treatment. This benefit is automatically added to the contract and is subject to all applicable terms of the contract. 1. A signed statement from the physician providing evidence of 90-day disability is required, or 2. Proof of disability income from an insurance policy, from an employer’s benefit program, or from a governmental agency is required.
ADL
You may make a one-time Penalty-Free Withdrawal of up to 10% (1st year) or up to 50% (2nd year or later) of your Accumulated Value if you are diagnosed with a covered impairment or treatment. This benefit is automatically added to the contract and is subject to all applicable terms of the contract. A signed statement from the physician providing evidence annuitant is unable to perform 2 of the 6 Activities of Daily Living (ADL) required, limitations are not temporary, and have existed for at least 90 consecutive days.
- A.M. Best A-
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