ANNUITIES
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An annuity is a common way to save for retirement with tax advantages1, and to convert assets into a regular income stream during retirement.
You can buy an annuity using a single deposit, or with flexible, ongoing premiums over time. Some annuities are available for shorter or longer time periods.
In New York, we may offer state-specific annuities, and not all products are available.
Ask your agent for details.
Single Premium Deferred Annuity (SPDA)
A SPDA is a tax-deferred indexed annuity that will only accept a single payment made directly to the National Life Group or through a transfer or rollover. Not available in NY.
Flexible Premium Deferred Annuity (FPDA)
An FPDA is a tax-deferred indexed annuity that accepts multiple premium payments while the annuity is in its accumulation period. Payment methods may include salary reduction payments, bank draft or pre-authorized check plan payments, transfers, rollovers, and single sum direct payments. Not available in NY.
MYGA/Fixed Single Premium Annuity
A fixed single premium annuity is a tax-deferred annuity that will only accept a single payment made directly to National Life Group or through a transfer or rollover.
A Multi-Year Guaranteed Annuity (MYGA) is a fixed single premium annuity that guarantees2 an interest rate for a specific period, for example three or five years.
MYGA
Green Mountain Freedom 5 (NY only)
Retiremax Secure (Not available in NY)
Fixed Single Premium Annuity (Non-MYGA)
Green Mountain Freedom (NY only)
Fixed Flexible Premium Annuity
Green Mountain Freedom Flex is a tax-deferred fixed annuity that accepts multiple premium payments while the annuity is in an accumulation period. Payment methods may include salary reduction payments, bank draft or pre-authorized check plan payments, transfers, rollovers, and single sum direct payments. Only available in NY.
Fixed vs. Indexed Annuities
Annuities offer a way to grow savings based on a fixed interest rate or on the performance of an index.
Fixed annuities
- Fixed interest rate
- Guaranteed minimum interest rate
Indexed annuities
- Based on the performance of an index such as the S&P® 5003
- No direct participation in stock or equity investments
- Downside protection through minimum guarantees to ensure that your cash value will not decline due to decreases in the index
- Offers greater earnings potential than a fixed annuity, but in years when the index is down, no interest will be credited4
1 Buying an annuity within an IRA or other tax-deferred retirement plan doesn’t give you any extra tax benefits. If considering an annuity within a retirement plan, base your decision on the annuity’s other features and benefits as well as its risks and costs, not on its tax benefits. Withdrawals prior to age 59 ½ may be subject to a 10% Federal Tax Penalty.
2 Guarantees are based on the claims-paying ability of the issuing company.
3 Standard & Poor’s®, “S&P®, S&P 500®, Standard & Poor’s 500, and 500 are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Life Insurance Company of the Southwest. The product is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing the product.
4 Assuming no withdrawals during the withdrawal charge period. Rider charges continue to be deducted regardless of whether interest is credited.
TC143416(0824)3
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