What is an Annuity and why do you need it?
An annuity is not a life insurance policy; it’s an investment that can help grow your money for long-term retirement needs. Annuities accumulate savings and interest that you can withdraw when you need to, and also pay guaranteed income – immediately or at a time of your choosing. Given the uncertainty of financial markets and disappearing sources of retirement income, an annuity can help you reach your financial goals.
When you own an Annuity:
- You can access your money when you need it
- Your money grows, tax-deferred
- Your beneficiary will receive the fully accumulated value of your contract
How does it work?
SBLI offers two different annuities. So whether you’re looking for an immediate source of income or an investment for later, SBLI has the product for you.
Fixed Immediate
The first type of annuity is a fixed immediate annuity. Immediate annuities can begin making guaranteed payments to you for a certain period, or even for life, immediately after purchase.
Fixed Deferred
SBLI's Optimizer MVA Series Annuity is a fixed deferred annuity that offers long-term, tax-deferred growth with relatively low risk. Deferred annuities can also provide guaranteed income for a period of your choosing on or before the maturity date.
What are my Annuity options?
SBLI's Single Premium Immediate Annuity
If you are interested in guaranteed immediate income for retirement or other needs, SBLI's Single Premium Immediate Annuity may be the right solution for you. You pay a premium in an amount of your choosing and your immediate annuity will pay you monthly, quarterly, semi-annual or annual income based on your premium paid and your life expectancy, among other factors.
SBLI offers several payout options, including life income with period certain for 5 (available for ages 90-95 only), 10, 15, or 20 years, period certain only from 10-30 years. A fixed immediate annuity offers:
- Competitive interest crediting rates
- Several options to fit your income needs if and when you choose to take income from your annuity
- Direct payment to a named beneficiary that avoids probate
SBLI's Optimizer MVA Series Annuity
SBLI's Optimizer MVA Series Annuity is a fixed deferred annuity acting as a contract between you and SBLI that provides tax-deferred growth on your premium payment and interest earnings, as well as other important benefits such as:
- Competitive interest crediting rates
- Access to your funds with penalty free withdrawals
- Access to funds in the case of terminal illness and other critical events
- Several options to fit your income needs if and when you choose to take income from your annuity
- Direct payment to a named beneficiary that avoids probate
An SBLI tax-deferred annuity is ideal if you:
- Prefer a safe, predictable place to put your retirement funds
- Have 'maxed-out' your 401(k) contributions
- Want to save money, tax-deferred
- Want a steady income stream for life at a later date
Annuities Product Comparison Chart
| |
SBLI Single Premium Immediate Annuity |
SBLI Optimizer MVA Series Annuity |
| Markets |
Non-qualified only |
Non Qualified and Qualified (Traditional and Roth IRA)
|
| Type |
Single Premium |
Single Premium
|
| What are my options for paying my premium? |
Minimum initial premium $10,000. Fund with cash. |
Minimum initial premium $5,000. Maximum $1,000,000 ($500,000 above age 75). Some exceptions apply. Contact an SBLI insurance professional for more details. Fund with cash per IRA Rollover or exchange from another annuity.
|
|
Can I make additional contributions?
|
No. |
No. |
| What ages qualify? |
Up to age 90 (Non-qualified)
|
Ages 0-85 (Age Last Birthday)
|
| In what states is this product available? |
SBLI’s Single Premium Annuities are available in Massachusetts, Maine, New Hampshire and Rhode Island.
|
SBLI’s Optimizer MVA Series are available in all states except California, Montana, and New York. |
| What are my options for receiving my payment? |
Monthly, quarterly, semiannually, or annual payments for life, a fixed number of years, or a combination of both. Direct deposit of payments available.
|
Life Income with Period Certain of 5 (available for ages 90-95 only), 10, 15, or 20 years. Period certain (10 - 30 years). |
| Is there a policy fee? |
None.
|
None.
|
| What interest rates apply? |
The interest rate credited is the rate in effect for this product at the time the application and fund are received at the SBLI home office. |
Initial interest rate guarantee period: one, two, three, or five years depending on product. Rates reset at the end of the initial rate guarantee period. Please contact your financial representative or a SBLI insurance professional for details.
|
| What is the market value adjustment? |
N/A. |
On Optimizer 2 MVA, Optimizer 3 MVA and Optimizer 5 MVA only. Surrenders and withdrawals made before the end of the initial interest rate guarantee period will be subject to a positive or negative Market Value Adjustment. Upon full surrender, the owner will never receive more than the contract's Accumulated Value or less than the contract's Minimum Guarantee Cash Surrender Value as a consequence of MVA.
|
| What taxes apply? |
Under non-qualified plans, a portion of each payment will consist of taxable interest income. Consult your tax adviser for more details. |
Taxes are generally deferred until funds are withdrawn from the contract, or paid as an income stream or death benefit. Consult your tax advisor for more details.
|
|
When does the annuity reach maturity?
|
N/A. |
Age 95 of the Owner's last birthday. |
| What is the death benefit amount? |
N/A. |
Accumulated value upon death of Owner. Please contact your financial representative or an SBLI insurance professional for details.
|
| Can I make withdrawals? |
N/A. |
Yes. You many take systematic or interest-only withdrawals. Withdrawals taken over the 10% free withdrawal rule are subject to surcharges and MVA.
|
| Does this product allow partial surrenders? |
N/A. |
10% of the accumulated value beginning in contract year 1 is available for all Optimizer MVA Series contracts. Required Minimum Distributions if greater than 10%.
|
| Does this product have a guarantee? |
Yes. You are guaranteed to receive payments as determined by your life expectancy deposit amount and income option chosen, among other factors.
|
None. |
| How long is my free-look period? |
You will have at least 10 days to refuse and return a policy. State specific rules may apply. |
You will have at least 10 days to refuse and return a policy. State specific rules may apply. |
| Other Features |
N/A. |
Systematic withdrawals, interest-only withdrawals. 45-day rate lock on 1035 exchanges, IRA transfers and rollovers.
|
| Are there riders available? |
None. |
Riders for Terminal Illness and Nursing Home are available. Please contact your financial representative or an SBLI insurance professional for details. |
Product Surrender Charges
| Year |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
| Optimizer 1 Non MVA |
9% |
8% |
7% |
6% |
5% |
0 |
0 |
0 |
| Optimizer 2 MVA |
8% |
8% |
7% |
6% |
5% |
4% |
0 |
0 |
| Optimizer 3 MVA |
9% |
8% |
7% |
6% |
5% |
4% |
0 |
0 |
| Optimizer 5 MVA |
9% |
8% |
7% |
6% |
5% |
4% |
3% |
2% |
| On Optimizers 2 MVA, 3 MVA and 5 MVA, surrender charges are applied to the sum of the Accumulated Value and the Market Value Adjustment. On the Optimizer 1 Non MVA, surrender charges are applied to the Accumulated Value. |