Providing tax-deferred growth at a 4-year guaranteed interest rate, the Advanced Choice annuity may be a great choice for clients who want to avoid market volatility but want to continue growing their retirement savings.
In 2020, fixed-rate deferred annuity sales, including MYGAs, totaled $51.7B, a 9% increase from 2019, and the highest fixed-rate deferred annuity sales since the Great Recession. Sustained market uncertainty in 2020 made MYGAs appealing to investors seeking saftey from market volatility with greater returns than CDs.
Why DPL Likes Advanced Choice
Providing tax-deferred growth at a 4-year guaranteed interest rate, the Advanced Choice annuity may be a great choice for clients who want to avoid market volatility but want to continue growing their retirement savings. The 4-year version of Advanced Choice is exclusive to DPL Financial Partners, which can help clients address potential income gaps in the short-term. Once the 4-year guarantee period has ended, consumers can choose to earn a minimum guaranteed value or roll into a new 4-year guarantee period.
How to Think About Commission-Free MYGAs
When your client needs:
PRINCIPAL PROTECTION: Fixed annuities are typically used for clients nearing or in retirement, as they protect principal from market downturns, yet provide a minimum guaranteed rate of return.
FIXED INCOME: Fixed annuities provide a consistent stream of income for clients that are looking to de-risk their portfolios from equities.
CASH REPLACEMENT: Fixed annuities can be used instead of cash investments, such as CDs or money market funds, to help generate better returns subject to the terms of the contract.2
Product information sourced from SecurityBenefit.com
1LIMRA. "Secure Retirement Institute: Fourth Quarter Registered Index-Linked Annuities Propel Overall VA Sales to Pre-pandemic Levels.". January 2021.
2Surrender charges, market value adjustments and other contract charges may apply that can reduce the principal.
Guarantees are backed by the financial strength and claims paying ability of the issuing insurance company.
There are risks, fees and charges associated with fixed annuities.
The purchase of an annuity within a retirement plan that already provides tax deferral under sections of the Internal Revenue Code results in no additional tax benefits. An annuity should be used to fund a qualified plan based upon the annuity’s features other than tax deferral. All annuity features, risks, limitations, and costs should be considered prior to recommending the purchase of an annuity within a tax-qualified retirement plan. In addition to surrender charges, withdrawals are subject to income tax.
Withdrawals prior to age 59 1/2 may also be subject to a 10% federal tax penalty.
Security Benefit Life Insurance Company is not a fiduciary and the information provided is not intended to be investment advice. This information is general in nature and intended for use with the general public. For additional information, including any specific advice or recommendations, please visit with your financial professional.
Guarantees provided by annuities are subject to the financial strength of the issuing insurance company. Annuities are not FDIC or NCUA/NCUSIF insured; are not obligations or deposits of and are not guaranteed or underwritten by any bank, savings and loan, or credit union or its affiliates; and are unrelated to and not a condition of the provision or term of any banking service or activity.
The Security Benefit Advanced Choice Annuity, form ICC13 5200 (9-13) and 5200 (9-13), a single premium deferred annuity, is issued by Security Benefit Life Insurance Company. Product features, limitations, and availability vary by state.
Neither Security Benefit nor its affiliates are related to DPL.