Puritan Life Insurance Company of America (Puritan) can help you grow your retirement assets in a way that is secure and takes advantage of tax deferred growth. Puritan is now offering the Puritan Market Index Annuity (Market Index Annuity) - a single premium fixed indexed annuity, with growth account options. With the Market Index Annuity, your money can achieve S&P 500† index-linked tax deferred growth while remaining protected from S&P index 500 declines. The Market Index Annuity may be an ideal component of your retirement planning, and includes guaranteed income for life if you elect to purchase the Guaranteed Lifetime Withdrawal Benefit Rider. Additionally, you have access to your Accumulation Value for any reason with a 10% penalty free withdrawal each year and you also have access to the entire Accumulation Value, penalty free, should you have a critical or terminal illness. With the Market Index Annuity you can have the best of both worlds: options for Accumulation Value growth without the worry of S&P 500 index declines.
Market Index Annuity Benefits:
Each year on your contract anniversary, you may choose to allocate your Accumulation Value between three interest crediting account options:
With the opportunity to reallocate your Accumulation Value annually among the three interest crediting options, you can actively direct your choices and the growth of your Market Index Annuity.
The Market Index Annuity has an optional 8% premium bonus rider, which is vested over 10 years. A premium bonus provides your annuity with an immediate head-start. For example, if your initial premium is $100,000, an 8% bonus of $8,000 will be immediately added to your Accumulation Value. This additional $8,000 will also grow on a tax-deferred basis. In addition, if you elect the Guaranteed Lifetime Withdrawal Benefit Rider, the premium bonus will be added to the Benefit Base of the rider. Your choice to receive the premium bonus will affect your credited interest rate.
The GLWB rider can pair with the Market Index Annuity to provide guaranteed income for life for an annuitant or an annuitant and spouse. A Benefit Base is set up using your initial premium plus any bonus and grows at a rate of 5% simple interest per year for 15 years. Additionally, if the Accumulation Value is larger than the Benefit Base on any contract anniversary, the Benefit Base automatically steps up to the larger Accumulation Value and continues to grow. Your age, as well as the amount of the Benefit Base at the time you elect to start payments under this rider, will determine the amount of each guaranteed “paycheck”. This “paycheck” is payable even if you exhaust the Accumulation Value of the annuity the GLWB rider is attached to. Due to the intricacies of this rider, please see the separate GLWB brochure for more information.
While you always have access to your money, a surrender charge is applicable if you choose to make a withdrawal greater than the penalty-free amount prior to your tenth policy anniversary.
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The Market Index Annuity is designed to provide you with access to your funds when you need them the most. On average, 7 out of 10 people age 65 or older will need long-term care at some point in their lives in order to allow them to perform their normal activities of daily living.‡ If you need access to your funds for critical or terminal illness or for nursing home care, you may receive 100% of your Accumulation Value without surrender charges or a Market Value Adjustment (see your contract for specifications). Additionally, if you need periodic access to a smaller amount of your Accumulation Value, you are entitled to a penalty free withdrawal of 10% of your Accumulation Value each year. For qualified plans, surrender charges on Internal Revenue Service (IRS) minimum distributions exceeding the minimum withdrawal amount will also be waived.
A Market Value Adjustment (MVA) may increase or decrease the amount of your withdrawal depending on changes in the 10 Year Constant Maturity Treasury Rates. An MVA will not be applied after the surrender charge period or if you annuitize your contract after the third contract year. Only a positive MVA will be applied in the case of a death benefit.
The Market Index Annuity allows you to name a beneficiary of your choice (other than your estate) to which your annuity’s death benefit will be paid. The death benefit equals the Accumulation Value plus any positive MVA. This advantage allows the benefit to bypass the delays and expenses of a probated estate.
Tax deferral is one of an annuity’s greatest benefits. Whether you purchase your annuity with after-tax (non-qualified) or pre-tax (qualified) dollars, you will receive the benefit of compounding interest without having to pay federal or state taxes until you withdraw your money. This tax deferral is even more beneficial if you are in a lower tax bracket when you make a withdrawal – as many expect to be when they retire.* Please consult your tax advisor.