It is extremely exciting that Sentinel Security Life Insurance Company is launching a new annuity product called the Summit Bonus Index℠ Annuity. This is a fixed index, single premium, deferred annuity contract with a premium bonus. This is the perfect product to add to our Annuity line of business.
The Summit Bonus Index℠ Annuity has four indexing strategies where the interest is calculated by using an equity index. This is a great way to obtain the benefits of the market growth without exposure to market loss. The four strategies that are offered are the Point-to-Point, Monthly Average, Daily Average, and Monthly Sum. There is also a Fixed Account that annuity owners can allocate money to guarantee a fixed interest rate.
One of the key features of this new annuity is the premium bonus. Sentinel Security immediately adds a bonus to the value of the annuity at the time of issue. The bonus is calculated based on a percentage of the initial premium. This is money that is immediately deposited into the account in addition to the funds provided and will earn interest right from the beginning. The premium bonus is subject to a vesting schedule. So as long as you don’t take any withdrawals in excess of the penalty free withdrawals, this is yours to keep!
In addition to the premium bonus, this new product also offers an optional Income Rider. The Income Rider can provide a guaranteed stream of income for the rest of the owner’s life even if the income payments reduce the value of the annuity to zero. What is the difference of an Income Rider versus an annuitization or SPIA (Single Premium Immediate Annuity)? One of the big differences is that there is still a death benefit even after the income payments begin. Another difference is that withdrawals in addition to the income payment can be taken. Excess withdrawals may reduce future income payments, but are available if needs require.
The Summit Bonus Index℠ Annuity is available to purchase starting March 27, 2013. For additional information on the product, please visit www.sslco.com or call 800-247-1423.
Blog written by: Janelle Boudrero, New Business Manager for Sentinel Security Life Insurance Co.